State firm, PT Perusahaan Gas Negara Tbk (IDX: PGAS) targeting to distributes natural gas 912 billion British Thermal Units per day in this year - Photo by the Company

JAKARTA (TheInsiderStories) – State firm, PT Perusahaan Gas Negara Tbk (IDX: PGAS) targeting to distributes natural gas 912 billion British Thermal Units per day (BBTUD) in this year, said the management yesterday. This target is 12 percent higher than the realization in 2020 at 815 BBTUD.

According to the CEO, Suko Suhartono, the targets based on the additional of corporate customers, such as fertilizer producer, PT Pupuk Indonesia, Kilang Balongan owned by the parent PT Pertamina, PT Perusahaan Listrik Negara as well as consumers in the Central Java region. He reported, 184 out of 188 industries have benefited from lowering gas prices.

Of this amount, the realization of gas distribution only reached 240 BBTUD from an allocation of 374 BBTUD. While, to boost the demand and the utilization by the household sectors, the sub-holding gas under Pertamina requested a number of incentives to the government.

In the meeting with parliament, he hope that the government willing to reduce gas price from upstream, considering that currently a number of industries have get the benefits for the gas price reduction of US$6 per MMBTU. Currently the upstream gas price for household customers is charged at $4.27 per MMBTU and is expected to reduced to $2 per MMBTU.

The company is targeting to construct of a household gas network around 1.2 million connections by 2024.  Sukohartono also proposed the relaxation of take or pay and  cash compensation from the government due to weak demands.

Entering 2021, the company is preparing to develop a massive gas infrastructure and the pipeline projects targeted to completing in 2021 – 2023, like the Rokan oil pipeline, transmission pipelines in North and Central Sumatra, the South Sumatra West Java Area integration pipeline, gas utilization pipeline for petrochemicals, transmission pipelines in Kalimantan, transmission pipelines in Central Java and distribution in Kendal – Semarang – Demak, as well as pipes for industrial, commercial and household customers.

Perusahaan Gas Negara will also provide gas for the fulfillment of all Pertamina refineries. One of the targets is the completion of the Refinery Gasification program in Balongan, West Java. Currently, the gasification of the existing Balongan has been fulfilled through gas distribution from PT Pertamina EP and PT Pertamina Hulu Energi through the PT Pertamina Gas pipeline.

The gas infrastructure development to meet the needs of the Balikpapan Refinery through the Senipah – Balikpapan gas pipeline and the Cilacap refinery gasification will be carried out by utilizing its portfolios. In this project, the issuer is preparing the construction of the Cilacap LNG Receiving Terminal which is targeted to operate in the second half of 2022.

Then, the construction of the Rokan Oil Transmission Pipe project to support the government’ program in increasing oil production from the Rokan Block in 2021 as the backbone of national petroleum production and one of the largest oil blocks in Indonesia.

Written by Editorial Staff, Email: theinsiderstories@gmail.com