PGN to build 1,685 km pipeline

IDX-listed state owned gas distributor PT Perusahaan Gas Negara (PGN) Tbk said on Wednesday it is building a total of 1,685 km new gas pipelines in various parts of the country from this year through 2019, which will bring its total pipeline asset to 8,656 km.

Like the 7,100 km pipelines the firm already built, the new pipelines are being built by the firm using the firm?s own budget, PGN?s Corporate Secretary Hery Yusup said.

The new pipelines include the Duri-Dumai-Medan open access pipeline from Riau to North Sumatra, the Semarang open access pipeline in Central Java, and distribution pipelines in the areas where the firm already operates as well as new areas.

?PGN has also been assigned by the government to build the Batam (Nagoya) distribution network, the WNTS-Pemping pipeline. Financing for these projects does not come from the state budget but PGN?s own budget instead,? he said.

Besides, he said, PGN will build a total of 60 new CNG stations in Jakarta, West Java, East Java, Banten, Batam, Lampung, Riau and North Sumatra. The firm also plans to build a mini LNG system in the central and eastern part of Indonesia.

Once the new pipeline projects have been completed in 2019, PGN?s gas distribution capacity will increase to 1,902 mmscfd, which could potentially create oil fuel saving worth Rp 110.9 trillion among the public. In 2015, the firm distributed 1,586 mmscfd of gas, creating fuel saving worth Rp 88 trillion.

Editing by Johannes Simbolon