In the year 2021 the Indonesian Government is continuing its effort in optimizing the usage of natural gas for domestic need. The Indonesian Ministry of Energy and Mineral Resource will aim to reach 120,776 house connection (SK) to expand the country gas network while offering 56,000 units of gas fuel converter kits to local fisherman and farmers this year.
The government plan is to expand their gas connection through 21 districts/cities. Scope of its development cover West and East Java, Aceh, South Sumatera and Central Sulawesi told by the Sub Head of Directorate of Planning and Procurement of Oil and Gas Infrastructure Development, Wahyudi Akbari. He explained that with the fund allocation focused on the Covid-19 pandemic in 2020, the plan was delayed and targeted to finish by 2021 (5/12/2020).
As a whole, a total of 794,000 SR will be connected to the gas network by 2021 confirmed by the Minister of Energy and Mineral Resource Arifin Tasrif at a press conference on Thursday (07/01/2021). Natural gas is practical and environmentally friendly than oil fuels he continued.
To alleviate some financial burden and ensure the programs runs at a maximum capacity, the Ministry of Energy and Mineral Resource will cooperate with business entities under the Government Cooperation with Business Entities scheme (KPBU). "With the program continuation in the future, we'll carry out expansion studies on the use of (KPBU) scheme in 2021" said Arifin.
In the industrial gas sector, the government showed its continued support on the construction of gas transmission and distribution pipelines. Finishing the gas infrastructure at Cirebon - Semarang and Dumai - Sei Mengke pipelines as well as other terminals added Arifin.
In the past, the government aims to increase the industrial competitiveness by adjusting industrial gas price at the plant gate to 6 USD per MMBTU. A total of 2,601 BBTUD of natural gas has been allocated, 1,205 BBTUD for Industries and 1,396 BBTUD for PLN's power plant.
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