PGN teams up with local governments

State owned gas distribution company PT Perusahaan Gas Negara (PGN) will build gas distribution networks for household uses in Jakarta, Bogor, Bekasi and Tangerang in cooperation with the local governments, Kontan daily reported on Tuesday.

Under the cooperation agreements signed on Monday, PGN would gradually supply gas for households in these areas in five years, PGN?s president director Hendi P. Santoso said in Jakarta on Monday.

He said that the company would also cooperate with the state owned housing company Perumnas in the distribution of gas to households.

In addition to the cooperation with the local governments, and Perumnas, PGN has also signed cooperation agreements with a number of government offices in the distribution of compressed natural gas (CNG) for government cars.

Under the agreement signed on Monday, the government offices including the energy and mineral resources ministry and transportation ministry agreed to provide conversion kits for government vehicles at the respective ministries so that the vehicles can use CNG fuel.

PGN, on the other hand, agreed to provide the CNG supply for the government vehicles at the two ministries. (*)