Pertamina, PGN instructed to build new household gas distribution network this year

State-owned oil and gas firm PT Pertamina, and state-controlled gas distribution firm PGN Tbk have been instructed by Minister of Energy and Mineral Resources Sudirman Said to develop and operate new household gas pipeline networks in a number of regions this year.

The Directorate General of Oil and Gas at the ministry said in a statement Thursday that Pertamina has been assigned to develop and operate new pipeline networks to distribute more gas to households in Balikpapan (East Kalimantan) and Prabumulih (South Sumatra).

A total 1.3 mmscfd of gas has been allocated for the household consumers in the two cities, comprising of 0.5 mmscfd from gas producer PT Chevron Indonesia Company for the Balikpapan city, and 0.8 mmscfd from PT Pertamina EP and PT Tropik Energi Pandan for the Prabumulih city.

Meanwhile, IDX-listed PGN has been assigned to develop gas network in Batam (Riau Islands), Surabaya (East Java) and Tarakan (North Kalimantan).

A total of 1.2 mmscfd of gas has been allocated for the three cities including 0.1 mmscfd from JOB Pertamina-Talisman Jambi Merang for Batam, 0.6 mmscfd from PT Pertamina Hulu Energi West Madura Offshore for Surabaya, and 0.5 mmscfd from Manhattan Kalimantan Investment Pte Ltd, PT Pertamina EP, and PT Medco E&P Indonesia for Tarakan.

The statement said that the gas volume can be later adjusted based on realized volume.

Editing by Reiner Simanjuntak