PGN to build 1,685 km gas pipelines

Tuesday, February 23 2016 - 01:22 AM WIB

IDX-listed gas distribution company PT PGN Tbk plans to build new gas infrastructure facilities in 2016-2019, including a combined 1,685 km gas pipelines to help increase domestic gas utilization.

PGN President Director Hendi Prio Santoso said in a statement Monday that the new pipelines will expand the company?s total gas pipelines to 8,656 km by 2019.

?PGN plans to build gas infrastructures to increase domestic gas utilization. Total additional gas pipelines to be built by PGN starting this year until 2019 is around 1,685 km,? Hendi said in the statement.

Hendi said that aside from the new pipelines, the company will also build other infrastructure facilities including 60 gas refilling stations in various parts of the country, and mini LNG system in the central and eastern parts of Indonesia.

Hendi said that the new additional gas pipelines will increase gas utilization capacity by 1,902 mmscfd. Last year, PGN distributed as much as 1,586 mmscfd of gas.

He said that the planned new gas pipelines include the Duri-Dumai-Medan open access transmission pipeline project, Muara-Bekasi-Semarang open access transmission pipe, WNTS-Pemping Batam Distribution Pipe (Nagoya), and other new gas distribution pipelines in existing and new areas.

He added that the current drop in oil price provides momentum to build the new pipelines as lower oil price makes the price of pipes cheaper.

PGN Head of Corporate Communications, Irwan Andri Atmanto said that as of end January 2016, PGN operates a total of more than 6,971 km gas pipelines including Grissik-Duri (529 km), Grissik-Batam-Singapore (446.78 km), Kepodang-Tambak Lorok or Kalija I (207 km), SSWJ (1,002 km), transmission in Medan (30 km), and others.

Editing by Reiner Simanjuntak

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