Investment for new gas infrastructures estimated at $25b

By Thomas Sembiring

Petromindo|Boim

IDX-listed gas distribution firm PT Perusahaan Gas Negara Tbk (PGN) estimated that investment requirement to build new gas infrastructure facilities including 25,000 km of transmission pipelines in the country through to 2025 is estimated at a whopping US$25 billion.

?The new capital expenditure is estimated at $25 billion, for new transmission pipelines, LNG terminal and also virtual pipeline,? said PGN President Director Hendi Prio Santoso on Tuesday.

Hendi said that construction of new gas infrastructure facilities will be particularly focused in central and eastern part of Indonesia. The new facilities will increase utilization of natural gas in the country.

Hendi said that this year, PGN will focus on developing gas infrastructure facilities from West Natuna to Batam totaling 10 km in length. He said that this project is important as gas from West Natuna has been exported due to the absence of facilities to serve domestic market.

Editing by Reiner Simanjuntak