MEMR targets to connect 4m households with city gas network
Thursday, July 9 2020 - 12:38 AM WIB
The Ministry of Energy and Mineral Resources (MEMR) said the government targets to connect 4 million households (SRs) with city gas network (jargas) until 2024.
In order to realize the plan, the government will invite business entities to participate in the program through a joint public-private partnership (KPBU) scheme, starting in 2022.
"We encourage cooperation between the government and business entities in terms of the financing aspect. It is hoped that the cooperation will accelerate the development of the 'jargas' program," said Director for Planning and Oil-Gas Infrastructure Development of the MEMR, Alimuddin Baso said during a webinar on Tuesday (07/07).
Read also: MEMR reschedules development of city gas network
In 2020, the government initially targeted to connect 266,070 households with the city gas network program.
However, a portion of the funds have been reallocated to tackle the Covid-19 pandemic, therefore, this year the government revised down the target to only 127,864 households, spreading in 23 regencies and cities with total funds of Rp1.4 trillion, said Alimuddin
As of end 2019, the government has connected 537,936 households (SRs) with the city gas network program, 400,269 SRs (74.41%) of which was funded by the State Budget and 132,982 SRs (24.72%) was installed by PT Perusahaan Gas Negara (PGN), with the remaining 4,685 SRs (0.87%) was installed by Pertamina.
The city gas network program is also an effort to increase the utilization of gas in the domestic market, therefore, reducing the imported LPG.
Editing by Roffie Kurniawan