PGN to build 83-km gas pipelines in E. Java this year

IDX-listed gas distribution firm PT PGN Tbk has set a target to build a total of 83-km of new gas distribution pipelines in East Java this year.

Head of PGN office in Surabaya, East Java, Misbachul Munir was quoted by bisnis.com as saying over the weekend that the gas pipeline projects comprise of the 27-km Jetis-Poso (Mojokerto-Jombang), Kejayan-Purwosari (15 km), Kalisogo-Waru (30) km, and Manyar-Sedayu (11 km).

He said that so far only the Jetis-Poso and Kejayan-Purwosari pipeline routes have been completed.

PGN currently operates gas pipelines in a number areas in East Java including Surabaya (493 km), Sidoarjo (312 km), and Pasuruan (more than 189 km).

Misbachul said that once the planned new gas pipelines have been completed, PGN expected the number of gas customers in East Java will increase by another 34,073 including large industries, small-scale industries, shopping malls, restaurants, and households.

PGN?s customers in East Java currently totals 20,777 comprising of 454 large industries, 212 commercial businesses such as malls, cafes, restaurants and small-scale businesses, and 20,111 households.

In the first quarter of this year, PGN distributed a total of 130 bbtud of gas to the customers in East Java. Biggest customers are the food industries (27%), ceramics (22%), and chemicals (15%). (*)