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PGN, KAI to build virtual pipeline system to develop gas market
Perusahaan Gas Negara (PGN) has announced its cooperation with railway operator PT Kereta Api Indonesia (KAI) for the transportation of liquefied natural gas.
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PGN's floating storage and regasification unit (FSRU) in Lampung is pictured in an undated photo. (PGN/PGN)
P
ertamina’s gas subholding, PT Perusahaan Gas Negara (PGN), has announced its cooperation with railway operator PT Kereta Api Indonesia (KAI) for the transportation of liquefied natural gas (LNG).
The cooperation between the two state-owned enterprises is aimed at developing the domestic gas market and helping the government reach the targeted 22 percent share of gas in the national energy mix by 2025.
PGN would conduct trials this year for the use of KAI railway lines, PGN president director Haryo Yunianto said, adding that KAI was currently mapping out the loading and unloading paths and methods.
An agreement on the cooperation had been signed on July 14, Haryo said, and a team of representatives from PGN and KAI had been set up on Sept. 16 to conduct a study and handle the subsequent implementation.
The collaboration, he explained, was part of state-owned oil and gas company Pertamina’s larger effort to develop physical and virtual infrastructure to push domestic natural gas usage.
“The key to gas development is infrastructure,” Pertamina president director Nicke Widyawati told House of Representatives Commission VII, which oversees energy and mineral resources, during a work meeting in Jakarta on Wednesday.
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