Medan, September 19, 2025 – PT Perusahaan Gas Negara Tbk (PGN), through its subsidiary, PT Gagas Energi Indonesia (“Gagas”), officially began construction of the first Compressed Natural Gas (CNG) Mother Station (“MS”) in Medan. This development marks a significant milestone in expanding natural gas utilization in North Sumatra through the Beyond Pipeline scheme.

The inauguration ceremony was attended by Medan Deputy Mayor Zakiyuddin Harahap; Oil and Gas Infrastructure Development Planning Sub-Coordinator Safriyanto; PGN Commercial Director Aldiansyah Idham; and PGN's Director of Strategy and Business Development Mirza Mahendra.

In his remarks, Zakiyuddin welcomed the construction of the Medan MS, which he hoped would provide convenience for businesses in Medan. "It is an honor for us to welcome the construction of the CNG MS in Medan. Through more efficient, cleaner, and more flexible CNG, we hope it will provide various conveniences for industrial and commercial businesses in Medan," Zakiyuddin said.

Construction of the Medan MS, which began in June 2025, is designed with a capacity of up to 1 MMSCFD and is projected to serve up to 4.48 BBTUD of natural gas in the form of CNG in North Sumatra, including the industrial, commercial, and MSME sectors.

Safriyanto, Sub-Coordinator for the Preparation of Oil and Gas Infrastructure Development Planning, stated that Compressed Natural Gas (CNG) is a strategic energy alternative that plays a crucial role as a bridge in the energy transition process in Indonesia. He emphasized that CNG is not only an efficient energy alternative but also a concrete manifestation of equitable energy access for the community. "By utilizing natural gas through CNG, Indonesia is stepping on the pillars of the energy transition that connects to a more sustainable and environmentally friendly future," said Safriyanto.

Echoing Safriyanto's sentiments, Aldiansyah Idham, Commercial Director of PT PGN Tbk, added that this project not only expands the natural gas market but also strengthens national energy security and encourages sustainable regional economic growth. "The construction of the Medan MS demonstrates Subholding Gas's commitment to supporting the 2060 Net Zero Emission target by providing affordable and widely accessible clean energy, while also supporting the government's program to reduce subsidies, as the natural gas supply is 100% domestic," Aldiansyah said.

Santiaji Gunawan, President Director of Gagas, stated that construction has entered the initial phase, encompassing civil works such as demolition of existing buildings, landfilling, and land compaction. "We are optimistic that the Medan MS can begin operations before the end of 2025, serving businesses in Medan and the surrounding areas," he said.

The construction of MS Medan also involves synergy with PT PGN Solution as a construction implementation partner and is expected to improve the quality of natural gas services through efficient and environmentally friendly CNG.

Currently, Gagas has distributed natural gas via CNG to various sectors through 15 SSPBGs and 4 Mobile Refueling Units (“MRU”) spread across 7 provinces, with a distribution target of 11.37 BBTUD in 2025.