Government conducting commercial viability study for city gas project
Saturday, November 16 2019 - 05:21 PM WIB
The government is commercial viability of city gas distribution network project, known as Jargas, in order to lure investment from private sector.
The study is needed prior to the implementation of the joint public-private cooperation scheme (KPBU) in developing the city gas network project.
Alimuddin Baso, Director Planning and Development of Oil & Gas Infrastructure at the Energy and Mineral Resources Ministry, said the price of gas sold to households is lower at Rp4,250 per cubic meter compared to Rp6,000 per cubic meter for gas sold to corporate customers.
Therefore, the ministry is conducting the study to find out ways on how to lure investors in the development of city gas project for households.
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The goal of the government is to ensure that households, including families with lower income, can get gas. The gas could be bundled with gas sold to corporate sector, Bisnis.com reported.
Based on the National Energy General Plan (RUEN), the government targets to connect 4.7 million households with city gas in 2025.
Since 2009, the government has connected 404,139 households with the city gas distribution network. In 2020, the government has set a plan to connect 266,070 households in 14 provinces with the city gas distribution network.
Editing by Roffie Kurniawan