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State gas company turns to industrial estates amid sluggish business
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Two workers of state-owned gas company Perusahaan Gas Negara (PGN) check gas pipelines channeled to power generator PT Indonesia Power at a gas meter station in Tambak Lorok, Semarang, Central Java. (JP/Suherdjoko)
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tate-owned gas company PT Perusahaan Gas Negara (PGN) aims to be more aggressive in supplying natural gas to various industrial areas nationwide amid a downward trend in its gas transportation business.
In the first half of 2017, PGN only distributed 749 million standard cubic feet per day (mmscfd) and transmitted 721 mmscfd of gas, seeing an annual decrease of 5.9 percent and 11.6 percent, respectively, as a result of weaker demand caused by a sluggish economy.
Therefore, PGN plans to expand its gas networks, including to the Cikande Modern Industrial Estate in Serang, Banten, which is operated by property firm PT Modernland Realty.
Read also: Pertamina, PGN join hands to supply LNG in central RIAt present, about 30 percent of the Cikande industrial complex, which occupies 3,175 hectares, has been developed. At least 200 local and multinational companies operate their businesses there, including ones from food and beverage, chemical and heavy equipment industries.
Furthermore, PGN has also started supplying gas to the Panbil Industrial Estate in Batam, Riau Islands, which is managed by PT Nusatama Properta Panbil.
“The gas supply will be used to generate power plants at the Panbil Industrial Estate for the next 10 years, whether in the form of compressed natural gas [CNG] or liquefied natural gas [LNG],” PGN commerce director Danny Praditya said in a statement on Wednesday.
However, PGN has also been forced to delay some of its major expansion plans in the wake of its declining financial performance, resulting in a 40 percent decrease in its allocated capital expenditure this year to US$300 million. (bbn)
