PGN eyeing CNG business

State owned gas distribution company PT Perusahaan Gas Negara (PGN) plans to develop the compressed natural gas (CNG) technology as an integral part of the distribution of gas in the country, Kompas reported on Tuesday.

PGN?s president director WMP Simanjuntak said in Jakarta on Monday that the use of CNG technology in the distribution of gas from one to another island in the country would be able to save operating costs.

?With the use CNG, we don?t have to build a factory to make liquefied gas and another factory to turn liquefied gas into its normal form,? he said, adding that the CNG technology would be used to supply gas to Bali, Lombok, Sumbawa, and Flores. The gas will be supplied from Donggi, Southeast Sulawesi.

Besides these destinations, the CNG technology would be also used to supply gas to Ambon, Halmahera and Ternate. The gas will be supplied form Tangguh in Papua.

According to Simanjuntak, the two gas distribution routes are part of the four routes to be developed by PGN. Each route will need at least two CNG tanker to distribute the gas. ?So for the all four routes we will need eight CNG tankers. Total investment for the eight tankers will reach about US$1.6 billion,? he said.

Besides the CNG, Indonesia will also develop the liquefied natural gas (LNG) technology in the national gas distribution in addition to pipeline system. (*)