Indonesia energy sector advances synthetic gas and hydrogen initiatives

Synthetic Natural Gas low-carbon hydrogen biomass gasification energy diversification PT Pertamina Gas Negara

Indonesia is pursuing several strategic energy diversification projects. PT Pertamina Gas Negara Tbk (PGN) is collaborating with PT Bukit Asam Tbk (PTBA) to develop Synthetic Natural Gas (SNG) from low-calorie coal in South Sumatra. This initiative aims to provide an alternative for coal mining downstreaming, with studies suggesting SNG could increase value-added by up to 5.7 times compared to raw coal sales.

In the renewable sector, PT PLN Energi Primer Indonesia (PLN EPI) has signed a Non-Disclosure Agreement with US-based FLEXIH Inc. to explore low-carbon hydrogen production using plasma gasification technology and biomass. Additionally, PLN EPI has commenced the use of Compressed Biomethane Gas (Bio-CNG) derived from palm oil mill effluent (POME) at the Belawan Gas and Steam Power Plant in Medan to reduce fossil fuel dependency.

On the logistics side, PT Nusantara Regas reported the delivery of 33 LNG cargoes through the third quarter of 2026, maintaining a plant availability factor of 96 percent to support national energy security.