With government’s support, PT Perusahaan Gas Negara (PGN) has secured additional gas supply to meet growing domestic demand after the State-owned gas company signed two strategic agreements − a Domestic Swap Agreement and a Gas Sales Agreement − with the West Natuna Group.
These agreements will redirect a portion of the gas volumes previously exported to Singapore by the West Natuna Group for domestic use. PGN President Director Arief S. Handoko represented the company in signing the agreements at the 2025 IPA Convex event on Wednesday, May 21, 2025.
Following the signing of the gas swap agreement, PGN secured over 71.83 BBTUD (Billion British Thermal Unit per Day) in new gas volumes through six cooperation agreements signed the previous day. The signing also reflects the implementation of directives from the President of the Republic of Indonesia, Prabowo Subianto.
“Let us collaborate − domestic and foreign private sectors, state-owned enterprises, and all levels of government. We must work together to achieve our national goals. Relying heavily on imports means high resource outflow,” President Prabowo said during the Signing Ceremony of New Production Sharing Contracts and Commercial Agreements at IPA Convex 2025.
Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas), Djoko Siswanto, said the domestic gas swap serves as a tangible measure to address potential supply deficits. So far, imports have been avoided, with the government facilitating gas swap mechanisms with suppliers from the Natuna region.
“PGN extends its appreciation to the government for its holistic support in meeting domestic gas needs. We are committed to optimizing this supply to ensure continued gas services and support national energy security,” said Arief.
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