Gas Network Project for Private Corporations

Summary

The government allows private companies to develop the gas pipe network project through the government-to-business (KPBU) scheme. The Energy and Mineral Resources Ministry’s director for oil and gas infrastructure planning and development, Alimudin Baso, revealed that the government might allow them to build about 2.4 million household gas network with a total investment of up to Rp27.4 trillion (US$2 billion) in 2021-2024.

According to the plan, the quota for private companies in 2021 is 50 thousand of household gas networks. The number will multiply in the next year to 839.5 thousand and slightly drop to 800 thousand in 2023 and 2024. Alimudin also unveiled the government’s plan to hold a tender for the project and assign PT Perusahaan Gas Negara Tbk (PGN) to operate the networks built by the private companies. The highest bidder will then affiliate with the PGN to distribute the gas.

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