PGN to build gas pipeline along 1,685 km

Thursday, February 4 2016 - 03:00 PM WIB

By Bernard Loebs & Febry Silaban

State owned gas distribution firm PT PGN (Persero) Tbk plans to develop more gas infrastructures to increase domestic gas utilization for the year 2016-2019.

"The total length of the additional gas pipeline to be built by PGN (over the period) is 1,685 km," President Director of PGN Hendi Prio Santoso said.

Hendi added that besides gas pipeline, PGN will also build other gas infrastructures such as mini LNG system in the central and eastern part of Indonesia, and CNG stations for ground transportation.

"The addition of the gas infrastructures will potentially increase (the national) gas utilization by 1,902 mmscfd, which will in turn potentially generate Rp 110.9 trillion in savings (of the national fuel consumption)," he explained.

PGN?s reports said the firm channeled 1,586 mmscfd of gas throughout 2015, equivalent to 286,000 barrels of oil per day, accounting for 20 percent of domestic gas consumption. The 2015 gas supply enabled Indonesia to skip buying Rp 88.03 trillion worth of oil fuels, which are more expensive than gas, according to Hendi.

He said that, until the end of January 2016, PGN has built pipeline along 6971 km. "This represents about 76 percent of the downstream gas pipeline network in Indonesia," he said.

Editing by Johannes Simbolon

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