Pertamina starts flowing gas to households in Ogan Ilir

At least 124 households in Ogan Ilir Regency, South Sumatra Province, have started enjoying gas distributed by state-owned oil and gas firm PT Pertamina via so-called inner city gas pipeline network developed and operated by its indirect subsidiary PT Pertagas Niaga.

Pertamina said in a statement on Tuesday that the number of households in the regency that will receive gas via the network will gradually be increased to a total of 3,725.

Pertagas Niaga teams up with PD Petro Ogan Ilir in operating the gas pipeline, developed at the request of the government and funded by the state budget. Ogan Ilir is the second regency in South Sumatra after Prabumulih where Pertagas Niaga has previously channeled gas to local households via inner city gas pipeline network program.

Gas supply for the Ogan Ilir inner city gas pipeline network program of 0.2 mmscfd comes from gas well operated by PT Pertamina EP, a subsidiary of Pertamina.

President Director of Pertagas Niaga, Linda Sunarti said in the statement that the government via the Ministry of Energy and Mineral Resources has requested the company to continue expand the inner city gas pipeline network program in South Sumatra. This year, the company will expand the coverage to include Muara Enim and Penukal Abab Lematang Ilir regencies, each with a target of 5,000 households.

The inner city gas pipeline network forms part of the government?s program to diversify energy consumption in the country in a bid to reduce subsidy and import of LPG. Pertagas Niaga also plans to develop similar project in Subang, West Java Province, and in Cilegon, Banten Province. This year, Pertamina has been assigned to develop inner city gas network in six cities in the country with a target to hook up a total of 130,880 households.

Editing by Reiner Simanjuntak