PGN set to develop gas pipeline in C. Java

State-controlled gas distribution firm PT Perusahaan Gas Negara (PGN) is ready to develop more than 300 km gas pipeline infrastructure in Central Java to help meet gas demand in the province amid industrial growth.

This was expressed by PGN President Director Hendi Prio Santoso during a meeting with Central Java Governor Ganjar Pranowo on Tuesday.

Under the plan, according to a PGN press statement, PGN will revive old gas pipeline as well as develop new pipeline facilities. In the first stage, the company will develop the Semarang, Kendal, and Demak pipeline route, stretching for 48 km with 16-inch pipe diameter. The next stage is to develop a 16-inch, 34 km pipeline in Ungaran, and the third stage is to develop a 235 km pipeline linking Solo Raya, Pati, and Pekalongan.

Priyo said that gas supply in Central Java is crucial and pressing as new industries are being developed in the province. The use of gas will help reduce dependency on the more expensive petroleum fuel, thus providing saving potential of about Rp 900 billion per year.

Editing by Reiner Simanjuntak