PGN boosts infrastructure projects, expands in upstream sector

State gas distributor PT Perusahaan Gas Negara (PGN) continues to develop gas infrastructure this year, in addition to carrying out a number of oil and gas block acquisitions to help ensure future gas supply for its gas network.

The company said in a statement released during Investor Summit in Jakarta Wednesday that throughout 2013 PGN has built and operated Mobile Refueling Unit (MRU) to support the conversion program for transportation sector. Until the end of the year, a total of three MRUs is targeted to be operational.

PGN is also in the process of developing Floating Storage Regasification Unit (FSRU) in Lampung. The FSRU is targeted to be completed in 2014 and commence operation in early 2015, said Director of Investment Planning and Risk Management M. Wahid Sutopo.

Also, the construction of 30 km Cikande-Bitung gas pipeline is now 90 percent completed. The pipeline is a part of the South Sumatra-West Java (SSWJ) project Phase-1.

PGN is also expanding in the upstream sector, through subsidiary PT Saka Energi Indonesia (SEI). It has acquired a 30 percent interest in PSC Bangkanai (Kalimantan) for US$27 million, 20 percent interest in PSC Ketapang (Madura) for $71 million, and 25 percent interest in PSC Pangkah (Madura) for $265 million.

Editing by Dadan Wijaksana