Government to connect 4m households with 'jargas' by 2024
Monday, February 24 2020 - 11:46 PM WIB
The government has reiterated its target to connect 4 million households with city gas network, known as 'jargas' by 2024.
Director for Planning and Oil-and-Gas Infrastructure, Alimuddin Baso, said last week that large portion of the city gas project will be carried out by private sector.
"The government will probably finance 15-20 percent of the city gas network project," he said
He said the government is still studying the best scheme on how to involve private business entities in developing city gas network. The government expects to obtain a comprehensive study soon as well as appropriate recommendations.
Read also: Government to intensify development of city gas network in 2020
One business entity that has declared its readiness to build the city gas distribution is PT Perusahaan Gas Negara Tbk (PGN). The concept for cooperation is still under discussion.
"We are looking for the right concept. Our team is discussing it with PT PGN," he said.
The development of city gas network is part of the government's drive to increase the utilization of gas in domestic market and at the same time reducing dependence on imported fuel, including LPG.
For the period of 2009-2019, the government has connected 400,269 households with the city gas network program. In 2020, the government aims to connect 266,070 households with city gas network, 3 times higher than the total households that were connected with the program in 2019 at 74,496 households.
Editing by Roffie Kurniawan