Pertagas to develop CNG facilities worth US$7 million in Jakarta

PT Pertamina Gas (Pertagas), a gas distribution unit of state oil and gas company PT Pertamina, said it will develop compressed natural gas (CNG) project facilities with total investment of US$ 7 million.

In the first phase, Pertagas will develop a pilot CNG project in Jakarta with capacity of 4 MMSCFD to meet the gas consumption needs of taxis and Transjakarta buses.

Harjana Kodiyat, director for development of Pertagas, said the company will take gas through pipe from Pertamina EP and state owned gas distribution company PT Perusahaan Gas Negara (PGN) at a price of Rp 3,100 per liter.

The gas will be compressed at mother stations, which will be built in Bitung, Tangerang and Margonda, Depok in West Java. Pertagas will also build the so-called daughter stations (smaller stations) in Jakarta.

Pertamina has been instructed by the government to build the CNG pilot facilities, which is expected to come on stream in 2012. In turn, Pertamina asked Pertagas to realize the project.

Harjana said the price of CNG for transportation is set by the government, while the CNG for industry is set by the company.

The CNG product produced by Pertagas will be distributed by Pertamina Retail, a unit of Pertamina, to consumers through its new gas stations (SPBGs) as well as existing gas stations (SPBUs).

In the second phase, Pertagas will develop CNG mother stations and daughter stations in other potential cities. (godang)