PGN to develop household gas pipelines in 26 cities

State-controlled gas distribution firm PT PGN Tbk is currently conducting pre-front engineering and design (Pre-FEED) study to develop household gas distribution pipeline networks in 26 cities across the country, Kontan reported on Monday.

 

The paper quoted PGN Director of Infrastructure and Technology Dilo Seno Widagdo as saying that the company has a target to develop gas distribution pipelines for around 1.2 million households this year, but realization may only be around 400,000 households.

 

He said that the realization will be accelerated in the following years to cover around 1 million households per year, to help realize the government’s target to develop gas distribution pipelines for 4.7 million households through 2025. It will, however, will also depend on the readiness of the local administrations in issuing the required permits.

 

The government is seeking to expand the household gas pipeline distribution networks in a bid to push households to convert into natural gas from LPG, which are mostly imported. The government provides financing via the state budget for state firms including PGN and PT Pertamina Gas to develop the gas pipeline networks.

 

But as funding capacity of the state budget is quite limited, the government also opens other funding options including through public private partnership scheme.

 

To date around 325,773 households in 40 regencies/cities in 16 provinces have been connected with gas distribution pipelines. (*)