Gas Distribution Networks Targeted in Total 46 Regions in Indonesia This Year

Gas Distribution Networks Targeted in Total 46 Regions in Indonesia This
Year

The government, through the Directorate General of Oil and Gas of the
Ministry of Energy and Mineral Resources (ESDM), targets to install 271.5
thousand household gas distribution connections in 2017.

"In 2017, the target is 271.5 thousand household connections, which includes
247.5 thousand connections from state-owned gas distributor firm PT PGN Tbk
and 16 thousand from PT Pertagas firm. The development is financed mainly
through funds from the state budget," Director of Oil and Gas Infrastructure
Planning and Development Alimuddin Baso remarked in Jakarta on Wednesday.

The government is targeting to set up gas distribution networks in a total
of 46 regions in 2017. Since 2015, a total of 210 city gas network areas
were planned to be developed until 2019. The funds for 10 areas will be
sourced from the state budget, while the rest will be funded by state-owned
enterprises.

The use of a gas distribution network connection is more efficient than
liquefied petroleum gas (LPG) in cylinders. A three-kilogram (kg) LPG worth
IDR20-23 thousand is equivalent to IDR18 thousand of liquefied natural gas
(LNG). As compared to the 12-kg LPG cylinder worth IDR130 thousand, LNG
distributed through the network connection is only IDR72 thousand.

Earlier, ESDM Minister Ignatius Jonan had promised additional gas network
connections for households through the state budget funds in 2017. "Funds
for the gas network will be sourced from the allocation of around IDR190
billion for financing tank construction," Jonan noted.

According to Jonan, assuming that a connection costs about IDR10 million per
household, with additional funds worth IDR190 billion, a total of 19
thousand more connections can be provided in some regions in Indonesia. "The
use of additional funds will be accorded to the development of the network."

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http://www.en.netralnews.com/news/business/read/8840/gas.distribution.networ
ks.targeted.in.total.46.regions.in.indonesia.this.year

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com