Gov’t to Optimize Natural Gas Use for Domestic Needs

Energy and Mineral Resources Minister Arifin Tasrif (Photo by: Documentation of Cabinet Secretariat PR).

The Government has renewed commitment to make optimum use of natural gas for domestic needs this year.

To that end, in addition to expanding the provision of 56,000 units of gas fuel (BBG) converter kits to fishermen and farmers, the Government has also set a target of additional gas pipe networks of 120,776 household connections (SR).

“This year, we aim to have an additional 120,776 household connections so the total gas pipe networks to be built will reach 794 thousand household connections,” said Minister of Energy and Mineral Resources Arifin Tasrif in a statement, Friday (09/01).

The use of gas pipe networks, Arifin continued, is considered more practical and environmentally friendly.

“We hope we can optimize (the use of gas pipe networks) because it’s more practical and environmentally friendly than fuel,” he said.

In the meantime, in order for this program to run optimally and ease the financial burden of the state, the Government, he said, will partner with business entities through the public-private partnership (PPP) scheme.

“In the future, we’ll increase the installation program for gas pipe networks. For that, we’ll conduct an expansion study to use the PPP scheme,” he said.

For the record, 135 thousand household connections have been built in 23 regencies/cities in 2020, while 99.1 thousand in 2016, 53.7 thousand in 2017, 90.2 thousand in 2018, and 74.5 thousand household connections in 2019.

As for the utilization of gas for industry, Arifin said the Government continues to provide support for the construction of gas transmission and distribution pipes.

“We must complete several gas infrastructure facilities, including Cirebon – Semarang, Dumai – Sei Mangke and other terminals,” he said.

For the record, the Government has previously provided support for increasing industrial competitiveness by adjusting gas prices to US$6 per million British thermal units (mmbtu) at the plant gate with a volume of 2,601 billion British thermal units per day (bbtud) comprising 1,205 bbtud for certain industries and 1,396 bbtud for generators operated by state-owned electricity company PLN. (MINISTRY OF EMR PR/UN) (MUR/EP)