PGN to build a new gas distribution network in Indonesia

Gas company Perusahaan Gas Negara (PGN) will invest US$ 200 million in a new gas pipeline network in Indonesia. The state-run company controls 3800 km of gas pipelines that supply a range of customers across the country, including power plants, manufacturers, restaurants, hotels, hospitals and households, and a 2160 km high pressure gas pipeline network, which transports natural gas from gas fields to receiving stations.

Improving natural gas infrastructure

Jobi Triananda, Director for Development at PGN, said that the company are aiming to develop natural gas distribution in Indonesia, stating, “We will continue doing our job to expand gas infrastructure.” The pipeline projects will also assist the government’s energy conversion scheme to increase the use of natural gas in the country and decrease oil usage.

A lack of infrastructure and distribution networks in Indonesia has resulted in an increase in exports. SKKMigas has predicted a 3% increase in natural gas production in 2014 to approximately 7.175 billion ft³/d. Production of natural gas totalled 6.981 billion ft³/d in 2013, of which around 3.850 billion ft³/d will be exported (a 14% y/y increase).

In order to improve domestic gas distribution, plans are in place for PGN to invest around US$ 1.2 billion in a number of new facilities in 2014. These include the development of the company’s floating storage regasification unit (FSRU) in the Lampung province and the construction of a new liquefied natural gas refinery.

Gas network project in Batam

Earlier this week, the company inaugurated a new 8.55 km gas distribution pipeline that will supply households in Batam, Riau Islands. The new pipeline forms part of the company’s plans to break into the household market. “With strong demand from retail consumers, PGN will push for efforts to further develop its networks into households,” said Triananda.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/13022014/pgn_to_build_a_new_gas_distribution_network_in_indonesia_84/