State-owned gas distributor PT Perusahaan Gas Negara (PGN) has reported improved operational fundamentals and plans to increase its reliance on liquefied natural gas (LNG) as part of efforts to maintain positive profit margins.

PGN Finance Director, Fadjar Harianto Widodo, said the company has delivered five LNG cargoes during the first half of 2025, following reduced pipeline gas availability since May 2024.

“We began distributing LNG around that time, with three cargoes initially, and the activity has continued,” Fadjar told a recent session at Pertamina Investor Day as quoted in a statement on Thursday, July 24, 2025.

LNG made up about 3 percent of total gas volumes distributed to customers in 2024. PGN targets more than 10 percent LNG share in 2025, with a longer-term outlook of up to 15 percent, reflecting a shift in supply strategy to accommodate declining domestic pipeline gas.

On the transmission side, PGN delivered 1,543 million standard cubic feet per day (MMSCFD) of natural gas in 2024. This figure was supported by increased production from the Jambaran Tiung Biru (JTB) field and the operation of the Senipah–Balikpapan pipeline.

Terminal Usage Agreement (TUA) volumes at the Lampung floating storage and regasification unit (FSRU) reached 72 billion British thermal units per day (BBTUD) in 2024. FSRU utilization has increased in recent years, with State electricity company PLN also sourcing supply from the terminal.

In the international market, PGN sold seven LNG cargoes in 2024. The company plans to continue trading activities in 2025 and is currently negotiating contract extensions with counterparties for 2026.

Capital expenditures reached US$255 million in 2024, with investments directed at pipeline infrastructure and LNG facility upgrades. Key projects included the Cikampek–Plumpang and Tegal–Cilacap pipelines, as well as tank revitalization at the Arun LNG terminal.

Financially, PGN posted a net profit of US$339.4 million in 2024 and reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$1.077 billion. Fadjar noted that cost control and liability management supported the company's bottom line during the year.

PGN also highlighted a dividend yield of 9–10 percent as part of its 2024 performance indicators. Plans to enhance infrastructure and expand LNG activities are expected to continue in 2025 and beyond.