PGN set to speed up gas infrastructure development

State gas distributor PT Perusahaan Gas Negara Tbk (PGN) is ready to take the government mandate of enhancing infrastructure development and utilization of domestic gas. As a state enterprise PGN has the experience and expertise to promote national gas use.

PGN's Director of Investment Planning and Risk Management Wahid Sutopo told a Focus Group Discussion on Thursday the company had so far built 6,000 km of gas pipeline across the country. PGN has also developed other infrastructures such as Floating Storage Regatification Unit (FSRU) and Mobile Refueling Unit (MRU) to support conversion of fuel into gas among industry players and public transportation operators.

The PGN-initiated conversion program has contributed a lot to the national economy. Wahid said that by supplying 1,600 MMSCFD which equals 250,000 barrels of oil per day, PGN contributed Rp 200 trillion-Rp 300 trillion a year to the GDP.

He said PGN built infrastructures without burdening the state. PGN received Rp 1.4 trillion in start-up capital, but has now built infrastructures worth Rp 40 trillion, while capitalization of the government?s shares now is worth Rp 70 trillion. With such a good financial capability, PGN has started to acquire several oil and gas blocks to increase national gas reserves.

"If we are entrusted to operate gas block, we will be ready to build the infrastructure so that all the people have access to gas,? he said.

Deputy Energy Minister Susilo Siswoutomo said the government would keep pushing for the energy conversion program. To ensure construction of gas infrastructure the government will selectively implement open access policy. Not all gas pipelines are accessible, but state enterprises like PGN and Pertagas have adopted the system on their pipelines.

Editing by Johannes Simbolon