Indonesia needs IDR77.9 trillion investment for gas infrastructure

http://www.bisnis.com/articles/gas-infrastructure-needs-idr77-dot-9-trillion-investment


JAKARTA: Executive Agency for Upstream Oil and Gas plans to subsitute the 17.38 million kiloliter subsidized fuel with gas, disbursing IDR77.93 trillion for building gas infrastructure during 2012-2017.

The Committee Member of Executive Agency for Upstream Oil and Gas (BPH Migas) A. Qoyum Tjandranegara said the energy diversification from fuel to gas will significantly safe budget allocation for subsidizing fuel.

The gas infrastructure, which is built by State-owned and private companies, were accelerated from previous schedule. For example, Natuna-Java, Kalimantan-Java and Cirebon-Semarang pipeline projects starting in 2012 from the previous schedule of 2015.

Seperately, PT Pertamina's Vice President of Corporate Communication Mochamad Harun said the company will not become the supplier of converter kit since this state-owned company does not have competency to supply this equipment.

During kerosene-to-gas conversion program in 2008, Pertamina was the supplier of the 3 kg LPG tank. However, the state-owned company must bear the procurement cost. “Until now, the government has not paid the cost that reached IDR2.8 trillion.”

The government estimated 2.5 million units converter kit needed for the program. which is going to be provided by PT Dirgantara Indonesia.

Moreover, the government will also import 250,000 units of the kit, sold for IDR12 million-IDR15 million per unit. The amount of units needed for public transportation all across Java and Bali is 1,000 units in 2012.(*)

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