PGN, Riau Islands sign agreement to develop gas pipelines

Monday, November 16 2015 - 01:16 AM WIB

IDX-listed gas distribution firm PT PGN Tbk and the Riau Islands provincial administration have signed an agreement for the development of gas infrastructure facilities and the utilization of gas in the province.

The agreement was signed on Friday by PGN Director for Infrastructure and Technology Djoko Saputro and Head of the Riau Islands Mining and Energy Office, Rahminuddin.

Under the agreement, PGN will develop a number of gas infrastructure facilities in Riau Islands to distribute gas produced in the province to various consumers.

Among of the key infrastructure projects include a 6 km pipeline to link the West Natuna Transmission System and Pemping Island.

PGN will also link offshore gas field in the Natuna Sea with main islands in the province such as Batam and Bintan through 600 km of pipeline.

To help optimize the use of gas in the province, the provincial administration will provide support for PGN to obtain allocation of gas from sources in the province.

Head of the Riau Islands Mining and Energy Office Rahminuddin said that the synergy with PGN is a good thing as it would help optimize the utilization of local natural gas resources to help increase the welfare of the local people. ?All this time we have only witnessed our natural gas resources being shipped to Singapore and other regions without (the province) getting the desired benefits,? he said.

As of the third quarter of this year, PGN has built and operated a combined 6,470 km of gas pipelines, or 76 percent of the national?s total. PGN, which serves as many as 105,000 customers including households, industries, transportation and electricity sector, is currently in the process of developing a number of projects in several regions.(*)

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