Pertagas Welcomes Government’s Plan to Develop Distribution Network Areas

Translations:

News Summary: In order to maximize domestic natural gas utilization, the government will accelerate the development of network infrastructure of transmission segment and gas distribution network areas. BPH Migas as the regulatory body will be the auctioning institution for both types of infrastructure.

SURABAYA – In order to maximize domestic natural gas utilization, the government through the Ministry of Energy and Mineral Resources (ESDM) will accelerate the development of network infrastructure of transmission segment and gas distribution network areas. BPH Migas as the regulatory body will be the auctioning institution for both types of infrastructure in accordance with the regulation of BPH Migas No 15 of 2016.

In relation with implementation of the regulation, BPH Migas conducted socialization at Santika Hotel Surabaya (30/07) attended by Vice Chairman of Commission VII DPR RI, Director of Oil and Gas Downstream Business Development, Secretary of National Council for Special Economic Zone Ministry of Economy, Head of East Java Energy and Mineral Resources Division,  Head of East Java Regional Development Agency, Head of East Java Industry & Trade Division, Head of East Java Cooperatives & Small/Medium Enterprise Department, Head of East Java Investment & Licensing Agency (BPMP), Head of Gresik BPMP, and representatives of business entities in natural gas namely PT Perusahaan Gas Negara, Tbk. (PGN), PT Pertamina Gas (Pertagas) and other companies.

The socialization also discussed the mapping of natural gas role in national energy security and the readiness of business entities to implement rules concerning tender for transmission lines and distribution network areas.

On the same occasion, Pertagas declared its readiness in gaining the special right to auction both types of infrastructure. "Currently Pertagas's main business is in the transmission segment, but in the next half year we will expand distribution network," said Suko Hartono President Director of Pertagas.

Acceleration of distribution business development will be carried out by co-management with Local Distribution Company (LDC) or building a new distribution pipeline network. The distribution network is planned to be 610 km long, and estimated to be worth USD367 million.

"We are optimistic to complete this distribution network project, because Pertagas has the advantage as (a member of) Pertamina Group, namely the certainty of gas allocation and transmission pipeline as the main foundation," Suko continued.

In addition to obtaining the special rights of the distribution network, the distribution business development is also in line with Pertagas’s transformation program to pursue new revenues from the gas distribution and commerce.

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