PGN to be appointed as sole operator gas pipelines

State Minister of State-Owned Enterprises Rini Soemarno said that the ministry plans to appoint state-controlled gas distribution company PT Perusahaan Gas Negara Tbk (PGN) to become the sole operator of gas pipelines in the country.

She was quoted by Koran Tempo as saying Monday that under the plan, PGN will takeover the pipelines owned by PT Pertamina Gas, a subsidiary of state-owned oil and gas firm PT Pertamina, either through acquisition or lease.

She added that by appointing PGN as the sole operator of gas pipelines, duplication of gas pipeline project can be avoided. ?We hope this synergy will improve gas connection directly to the consumers,? Rini said.

The paper also quoted Pertamina President Director Dwi Soetjopto as saying that the pipeline merger will increase gas distribution to consumers, and help reduce maintenance cost, which in turn can lower toll fee for gas distribution via pipeline by 20-40 percent.

Edwin Hidayat Abdullah, a deputy at the Office of the State Minister of State-Owned Enterprises, said that try out for the combination of PGN?s and Pertamina?s pipelines will start early next year.(*)