TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsPertagas, PGN to merge pipeline networks
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Employees of Pertamina Gas (Pertagas) check a gas pipe facility operated by the company. (Courtesy of pertagas.pertamina.com/-)
S
tate-owned energy giant Pertamina subsidiary Pertamina Gas (Pertagas) and state-owned gas company Perusahaan Gas Negara (PGN) are currently preparing their integration process, in particular the merging of their pipeline networks.
"Currently we are mapping the integration of the transmission and distribution pipelines and ensuring efficiency in order to cut the gas price," Pertamina vice president of corporate communications Wianda Pusponegoro said in Jakarta on Monday.
The goal of the cooperation between the two gas companies is to make the gas price more competitive and to extend pipelines to increase access to consumers, she said, adding that the merger is expected to save at least US$ 1.7 billion in investment.
"It's huge enough to build pipelines in areas that have no access to gas," she added.
The government will transfer its shares in PGN to Pertamina through a mechanism called inbreng and treat them as capital injection in the form of assets.
Thus, PGN will become a subsidiary of Pertamina.
Wianda said that to realize the plan the government needed to issue a new regulation. "The government regulation has not yet been signed. Therefore, the execution [of the merger] will be delayed. We expected that it would be implemented before Idul Fitri in July," she added. (bbn)
