PGN to build CNG station in Karawang

State gas distribution firm PT.Perusahaan as Negara (PGN) said on Tuesday it would build a compressed natural gas (CNG) central station in Surya Cipta industrial complex, Karawang, West Java with operations seen in 2011.

Business Development Director Bambang Banyudoyo said the project, which is expected to cost the company US$5 million, will be able to distribute 10MMCFD of gas to industrial customers in the area.

Bambang said the CNG station would be operated to serve customers which could not be reached by PGN?s distribution pipeline network.

Bambang said the CNG would use specially designed trucks to distribute the CNG to end customers, adding that the company may sell the CNG at US$12 per MMBTU, much higher than the $5.5 per MMBTU of gas it sells through pipe. (godang)