PGN earmarks $32m for construction of new CNG stations
Friday, March 20 2015 - 02:23 AM WIB
State-controlled gas distributor PT Perusahaan Gas Negara (PGN) has earmarked US$32 million for its subsidiary, PT Gagas Energi Indonesia, to build 15 compressed natural gas (CNG) stations in Java and Sumatra.
At present, PGN already has 12 CNG stations across the country.
Danny Praditya, President Director of PT Gagas Energi Indonesia, PGN?s subsidiary which handles gas retail business said as part of the program of diversification from oil fuel, the government has assigned PGN to distribute 10.5 mmscfd of gas for transportation sector this year. However, until now, there isn?t any gas sales and purchase agreement (GSPA) that has been signed, allowing the firm to take gas for its CNG stations.
As a result, PGN now sells its own gas at the CNG stations, Danny said.
Acting Director General of Oil and Gas IGN Wiratmadja promised a GSPA will be signed with PGN in May of this year.
He however did not specify where the gas will be sourced from.
Editing by Johannes Simbolon