The national natural gas transmission pipeline only reaches 2,625 or 20% of the target. PGN Corporate Secretary Heri Yusup said the lack of gas infrastructure has hampered allocations. As a result, only 52% of the gas produced is consumed domestically, while the rest is still exported to increase foreign exchange.
PGN Corporate Secretary Heri Yusup admitted that currently domestic gas demand is still very low, so producers have opted to export. Moreover, gas is not economical if it is stored for too long, so the gas that has been produced must be distributed as soon as possible. Heri said that if you want to achieve the maximum utilization rate of natural gas, no later than 2024, an additional 15,000 km of gas transmission pipelines and 14 liquidication projects must be built.
Apart from infrastructure, the target market and the exact amount of demand must also be considered. Currently, the total natural gas pipeline that has been built has reached 13,500 km. About 78% of the existing gas pipelines were built by PGN and the rest are owned by a subsidiary of PT Pertamina, PT Pertagas and 63 units of traders.
According to him, the last gas infrastructure to be built is the 1,200 km South Sumatra-West Java (SSWJ) pipeline. Meanwhile, in the 2016-2019 period, PGN will add a natural gas pipeline infrastructure of 1,680 km. The pipelines to be added are the Duri-Dumai-Medan open access transmission, Muara Bekasi-Semarang, the Batam WNTS-Pemping distribution pipe, and several other areas.
In 2019, the length of PGN's gas pipeline was 8,656 km and natural gas that could be channeled reached 1,902 mmscfd. Heri estimates that by doing so the national savings will reach IDR 88.03 trillion per year. This year PGN has also completed the construction of a gas pipeline in Batam along 18.3 km, Kejayan-Purwosari along 15 km, Jetis-Ploso along 27 km, and Kalisogo-Waru, East Java along 30 km.
PGN Corporate Secretary Heri Yusup said the lack of gas infrastructure has hampered allocations. As a result, only 52% of the gas produced is consumed domestically, while the rest is still exported to increase foreign exchange.
Apart from infrastructure, the target market and the exact amount of demand must also be considered. Currently, the total natural gas pipeline that has been built has reached 13,500 km. About 78% of the existing gas pipelines were built by PGN and the rest are owned by a subsidiary of PT Pertamina, PT Pertagas and 63 units of traders. According to him, the last gas infrastructure to be built is the 1,200 km South Sumatra-West Java (SSWJ) pipeline.
Investor Daily, Page-9, Wednesday, Oct 19, 2016
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