Ministry proposes higher investment for household gas pipeline networks

Monday, June 24 2019 - 01:00 AM WIB

The Ministry of Energy and Mineral Resources has proposed to the government to quadruple the state budget allocation next year to finance the development of additional gas pipeline networks for 293,533 households in 53 cities/regencies. 

Ministry Spokesman Agung Pribadi said in a statement Sunday that the ministry has proposed for a total budget of Rp 3.52 trillion, four times the 2019 budget allocation of Rp 799.96 billion to finance the development of household gas distribution pipeline networks (or also known here as jargas).  

He said that by 2020, the government projected that more than 690,000 households will be connected with gas pipeline distribution networks. 

The government this year is seeking to massively develop new household gas pipeline networks in a bid to push more households to switch into natural gas from LPG, which is mostly still imported.

From 2009 to 2018, the government has developed household gas pipeline networks in 40 regencies/mayoralties in 16 provinces, covering a total of 352,852 households. 

This year, the government plans to develop new jargas for 78,216 households in 18 regencies/mayoralties including Aceh Utara Regency, Dumai City, Jambi City, Palembang City, Depok City, Bekasi City, Mojokerto City, Karawang Regency, Purwakarta Regency,  Lamongan Regency, Mojokerto Regency, Pasuruan Regency, Probolinggo Regency, Banggai Regency, Wajo Regency, and Kutai Kartanegara Regency.

Editing by Reiner Simanjuntak

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