Households in Bontang receive gas supply from Pertagas

As many as 8,000 households in Bontang Regency, East Kalimantan Province, have started receiving gas supply this month following completion of a second phase city gas pipeline network in the area developed by gas distribution firm PT Pertagas Niaga (PN), a subsidiary of state-owned oil and gas firm PT Pertamina.

Pertamina said in a statement on Tuesday that the pipeline is operated by PN in cooperation with PT Bontang Energi Mandiri (BME), a company owned by the Bontang regency administration.

The statement said that the gas is supplied by PT Total E&P Indonesie at a volume of 1.5 mmscfd.

The second phase city gas pipeline network covers a number of districts including Bontang Utara, Bontang Selatan, and Bontang Barat.

The Ministry of Energy and Mineral Resources developed in 2015 the first phase gas pipeline network in Bontang serving some 4,000 households.

The Bontang phase II gas pipeline network is the second gas pipeline project to facilitate gas supply to households assigned to Pertamina by the government and financed by the 2017 state budget. Aside from the Bontang project, Pertamina has also been assigned to develop other inner city gas pipeline network projects in the regencies of Mojokerto, Muara Enim, Penukal Abab Lematang Ilir (PALI), Pekanbaru City, and Samarinda City, all of which must start operation in early 2018.

Editing by Reiner Simanjuntak