The Ministry of Energy and Mineral Resources (ESDM) is seeking a new company to replace State gas diribution company PT Perusahaan Gas Negara (PGN) as the executor of the West Natuna Transportation System (WNTS) gas pipeline construction project to Pemping Island, Riau Islands province. 

Secretary General of the ESDM Ministry, Dadan Kusdiana, has confirmed that the process is ongoing.

"The process of appointing a replacement is underway," Dadan spoke the media on Wednesday, February 26, 2025.

Previously, PT PGN had completed the Front End Engineering Design (FEED) for Final Investment Decision (FID), and prepared the 2025 Company Work Plan and Budget (RKAP). PGN also plans to start construction of a 5-km pipeline with an investment value of US$60 million.

The regulation was mentioned by Minister Bahlil Lahadalia on January 22, 2025 in Jakarta and is effective on the date stipulated. PGN began the construction and operation of the natural gas pipeline from WNTS to Pemping Island in 2016 using its own budget.

Executive Director of Center of Energy and Mineral Resource Indonesia (CERI), Yusri Usman, however, revealed that he has got the information that ESDM Minister Bahlil Lahadalia had appointed PT PLN Energi Primer Indonesia (EPI) as the executor of the project. Yusri said that the appointment was made after Bahlil revoked PGN's assignment.

Yusri also said that Bahlil had requested the WNTS pipeline to be operational by the end of 2025.

He assessed that the revocation of the assignment to PGN was carried out in a hurry. CERI, he said, had got a leaked Copy of the Minister of Energy and Mineral Resources Decree No. 20.K/MG.01/MEM.M/2025 dated January 22, 2025, which revokes the Decree of the Minister of Energy and Mineral Resources No.6105K/12/MEN/2016 on the assignment of PGN in the construction and operation of the WNTS gas pipeline to Pemping Island.

On July 30, 2024, PGN has received a gas allocation of 124 billion cubic feet (Bcf) from Conrad Asia Energy Ltd., at a price of US$5.5 per MMBTU from the Mako Field, Duyung Block, offshore West Natuna Basin. The gas is planned to be channeled through the WNTS pipeline to Batam, Riau Islands.

On October 1, 2024, the ESDM ministry confirmed that the gas flow from the WNTS pipeline to Pemping Islandwould begin to be connected in 2028. This project is part of the Natuna–Sumatra gas pipeline network, which will also be connected to the Dumai–Sei Mangkei network. The entire project is estimated to be completed in 2028.