Perusahaan Gas Negara sets capex US$500 million in 2017

Photo by SOEs Ministry

JAKARTA (TheInsiderStories) – PT Perusahaan Gas Negara Tbk (IDX: PGAS), publicly listed state-owned gas distributor, has set capital expenditure (Capex) of US$ 500 million for this year, said a company official. Portion of the capital expenditure will be obtained from its subsidiary PT Saka Energi Indonesia that has raised a global bond of US$625 million, with a 7-year tenor.

The subsidiary company, engages in the upstream oil and gas sector, is currently working on several projects.According to Finance Director of PGAS Nusantara Suryono after shareholder meeting on Thursday (4/5), Saka Energy’s itself prepared capital expenditure around $300 million.

Throughout 2016, PGAS pipeline infrastructure has expanded by more than 252 km. Currently, its pipeline’s length has reached 7,278 km or equivalent to 80 percent of national downstream gas pipeline. PGAS has channeled natural gas to 168,973 domestic customers.

Currently, PGAS is working on the 18.3 km of natural gas pipeline infrastructure in Batam, on a 125 km gas distribution pipeline project in Central Sumatra, the installation of marine pipelines and facilities for the Riau Islands along the 5 km, and several other gas infrastructure network in West Java and Surabaya.

PGAS plans to build 1,680 kilometers of gas pipeline by 2019, including Duri-Dumai-Medan open access transmission pipeline, Muara Bekasi-Semarang transmission pipeline and Batam (Nagoya) WNTS-Pemping distribution pipeline are some of the projects PGN will focus on. This year, the company will also optimize the Lampung floating storage and regasification unit (FSRU) facility managed by PT PGN LNG Indonesia be able to pipe 1.1 million cubic meters of LNG to meet customer demand in West Java and South Sumatra. (*)