Govt drafting gas infrastructure development concept

The government is drafting a concept for the development of gas infrastructures through 2030 involving private sector, the directorate general of oil and gas said in a statement on Thursday.

Agus Cahyono Adi, Director of Oil and Gas Program Oversight at the ministry of energy and mineral resources, said the involvement of private sector in the projects is necessary because the government does not have enough funds to finance all the projects. However, if the projects are not economically feasible for private companies, the government will step in using state budget.

?When it comes to underdeveloped or frontier areas, the infrastructures will be developed using state budget with the purpose of stimulating market growth there,? he said.

The infrastructure development will be carried out in phases. On the short term, the infrastructures that will be developed by the government are gas networks for households, CNG stations and gas pipelines. As for the private companies, they are expected to build receiving terminals.

With regards receiving terminals, Agus said, the government is mapping potential locations for the facilities. The terminals will be primarily built to support the government?s 35,000 MW program.

Based on the concept formulated by the government, the gas infrastructures development through 2030 are estimated to require $24.8 billion, consisting of $1.2 billion for pipeline, $2.2 billion for city gas, $0.4 billion for LPG infrastructures, $1.93 billion for CNG stations, $6.1 billion for regasification facilities, $1.3 billion for liquefaction.

Editing by Johannes Simbolon