PLN Forecasts 42% Gas Demand Surge by 2034 Amid Growing Electricity Needs

PLN expects gas demand to rise by an average of 4.5% annually until 2034, driven by growing electricity consumption from industrial expansion, transport electrification, and data centers.

The company projects natural gas demand will increase from 1,748 billion British thermal units per day (BBTUD) in 2026 to 2,490 BBTUD in 2034. Liquefied natural gas (LNG) is expected to account for a larger share of supply, increasing from 57% to 67% over the same period.

To secure future supply, PLN EPI has signed long-term agreements with West Natuna Exploration Limited (WNEL), Mubadala Energy, INPEX, and South Hub. The agreements cover gas supplies of up to 300 BBTUD and LNG contracts totaling more than 49 million tons.

Rakhmad Dewanto, Director of Corporate Planning and Business Development at PLN EPI, said the demand for electricity in Indonesia will continue to grow, making a secure, reliable, and flexible energy supply necessary. He emphasized that gas is not only a transition fuel but also an essential component in maintaining the reliability of the national power system.

PLN EPI is accelerating LNG infrastructure development, including floating storage and regasification units (FSRUs) in West Java, East Java, Bali, and Cilegon. The company is expanding gasification clusters in eastern Indonesia while increasing national LNG storage capacity to around 1.2 million cubic meters and targeting regasification capacity of 3,850 million standard cubic feet per day (MMSCFD).