PGN to build gas connections to 110,000 houses using own funds

IDX-listed state owned gas distributor PT Perusahaan Gas Negara (PGN) Tbk said on Wednesday that it will build gas connections to 110,000 houses using its own funds from this year through 2019.

The new gas connections will bring the firm?s household customers to 217,000 from 107,000 at present, PGN?s President Director Hendi Prio Santoso said in a statement

?This is part of our commitment to expand the utilization of natural gas which is efficient, clean and environmentally friendly energy,? Hendi said.

Hendi said PGN is a gas company which has the most complete segments of customers. Aside from households, PGN also supplies natural gas to big industrial and power plant sectors where its customers now total 1,529.

?PGN also channels gas to small and medium enterprises and customers in the commercial sector such as hotels, hospitals and malls, which now total more than 1,850,? Hendi said.

Hendi said aside from expanding network to household customers, PGN will also build 1,680-km pipelines in 216-2019. At present, the firm operates 6,980 km of pipelines, which account for 76 percent of the domestic downstream pipelines.

?Aside from building pipelines, PGN will also build mini LNG system in central and eastern Indonesia and build more CNG stations for land transportation. As of 2019, we shall build 60 more CNG stations,? he said.

Hendi said all the projects ? the development of new pipelines, gas connections to houses, mini LNG system and new CNG stations ? will increase the domestic gas utilization by 1,902 mmscfd.

?The increase in gas consumption volume shall result in (energy) efficiency for PGN customers amounting to Rp 110.9 trillion. Last year, PGN?s gas supplies to its customers resulted in national (energy) efficiency worth Rp 88.03 trillion,? Hendi said.

Aside from its own pipelines, PGN is also entrusted by the government to manage gas connections to 43,337 households that have been built in 11 mayoralties and regencies using state funds. The government has also assigned PGN to build gas connections to 49,000 houses. Combined with these, PGN will have a total of 309,300 household customers.

Editing by Johannes Simbolon