PGN, South Sumatra province form joint venture

State owned oil and gas company PGN and the provincial administration of South Sumatra have reached an agreement to establish a joint venture to help expand the province's gas distribution networks, Neraca reported on Thursday.

PGN's president director WMP Simandjuntak said in Palembang on Wednesday that the joint venture would takeover the company's gas distribution business in the province which continued to show a rapid growth thanks to growing demand both from industries and households.

Besides handling the distribution, the joint venture would also be in charge in expanding the gas distribution networks such as by developing secondary gas pipelines in the province, he added.

According to him, a similar cooperation scheme will also be adopted in other provinces so that PGN will be able to focus on the distribution of gas in the primary gas pipelines, while the distribution from the primary gas pipelines to end-users will be handled by joint ventures, either with the local government or private companies. (*)