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Minister Jonan Inaugurates Gas Network in Surabaya

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8 May 2017 09:16 WIB

TEMPO/Wisnu Agung Prasetyo

TEMPO.CO, Surabaya - Energy and Mineral Resources Minister Ignasius Jonan inaugurated a gas network which connects 24,000 household consumers in East Java.

"Household consumers using gas network connections can save on Rp20,000 per month," Minister Jonan said when inaugurating the gas network for household consumers at the Penjaringan Sari flat, Rungkut, on Sunday.

The gas network is built at a cost of Rp221.9 billion taken from the state budget.

Jonan said gas network connecting tens of thousands of household consumers is built based on the directives of President Joko Widodo (Jokowi).

The president has asked for gas development based on equitable distribution for economically weak citizens.

"In accordance with the governments policy, gas development is mainly designed for electricity and modest household consumers," the minister stated.

The government is also accelerating its LPG- (liquefied petroleum gas-) to-natural gas conversion program.

Every year, he said, the government allocates a fund from the state budget for the expansion of gas networks in various regions.

The development of the gas networks is designed for the people of the middle class and below so that they can enjoy clean and safe gas with a relatively low price.

"The state budget should be used for something needed by the people of the lowest class," Jonan said.

The gas needs amounting to 0.6 million metric standard cubic feet per day (MMSCFD) in Surabaya are supplied by PT Pertamina Hulu Energi West Madura Offshore.

According to the minister the length of the pipe network that connects 24,000 households in Surabaya totaled 196 kilometers.

Surabaya Mayor Tri Rismaharini appreciated the efforts of the minister and the state-owned gas distributor PGN to build gas network connections for 24,000 household consumers.

"This gas program is very helpful to residents because they can save on their spending. It is practical and is ready any time with clean and safe supplies," she said.

Oil and Gas Director General I Gusti Nyoman Wiratmaja Puja added that the government has built gas connections for 186 thousand household consumers in 14 provinces in the period of 2009-2016.

The development is carried out through the assignment of two state companies PT PGN and PT Pertamina.

In 2016, the government built 89 thousand connections for households in six cities, of which 24,000 are in Surabaya.

He said that besides efficiency for consumers, the development of gas connections for households also reduced the countrys LPG imports by 20,000 tons per annum. The network in Surabaya alone reduced the imports by 2,600 tons yearly.

"The government can save up to Rp131 billion a year," the director general said.

In 2017, the government will build a network of gas for 59,000 connections in 16 regions. "One connection needs an investment of Rp10 million," he added.

ANTARA




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