8,150 Houses in Probolinggo and Pasuruan Connected to Natural Gas Networks

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 616.Pers/04/SJI/2019

Dated: 16th October 2019

8,150 Houses in Probolinggo and Pasuruan Connected to Natural Gas Networks

The residents of Probolinggo and Pasuruan Regencies can now enjoy clean, cheap, environmental friendly and efficient energy after the construction of 8,150 Household Connections (SR) is complete. The event is marked by an official launch by Acting Director General of Oil and Gas, Djoko Siswanto, on Wednesday (16/10), at Tongas Wetan Village, Probolinggo Regencies.

These gas networks are a part of the 74,307 SR of natural gas networks spreading in 16 locations in 2019. The networks' construction in Probolinggo and Pasuruan is funded by the 2019 State Budget based on EMR Ministerial Decree Numbers 333.7 K/12/MEM/2015 and 119 K/10/MEM/2019.

The networks are made up of 11 sectors, with five sectors located in Probolinggo and the remaining six in Pasuruan. According to the work plan, there should be only 8.000 SR. However, because people show great enthusiasm for the networks, DG Oil and Gas adds another 150 house connections from Husky CNOOC Madura.

"The natural gas is supplied by Husky CNOOC Madura Ltd with allocated volume of 0.2 mmscfd," Djoko explained.

Djoko continues by saying that the government assigns PT Pertamina (Persero) through PT Perusahaan Gas Negara Tbk as a natural gas sub-holding company to carry out the construction. The construction started on 26 April with a work period of 216 days, or ahead of schedule. This is due to the support of the regional governments.

"We would like to thank the Regency Governments of Probolinggo and Pasuruan because the construction ran smoothly, and even ahead of schedule. Regional government's support is vital because based on previous experience, there are a number of non-technical aspects that can potentially block the construction of natural gas networks, for example, licensing or social problems occurring at the time of the construction," Djoko explained.

PGN's Infrastructure and Technology Director Redy Ferryanto adds that the total household connections built by using the State Budget in East Java are currently 66,111 SR. "We hope that the increased number of household gas connections in East Java, especially in Probolinggo and Pasuruan Regencines, will bring about numerous advantages to the public," Redy said.

The construction of natural gas networks is carried out in areas having natural gas sources or located near natural gas sources. Using natural gas for households can save LPG subsidies of approximately Rp 178 billion per year or equals to decreased LPG imports of about 25,500 tons per year.

The government has set a target of 404,139 SR by the end of this year. In 2019, natural gas networks are built in 16 locations, namely North Aceh Regency, Dumai City, Jambi City, Palembang City, Depok City, Bekasi City, Karawang Regency, Cirebon Regency, Lamongan City, Kutai Kertanegara Regency, Pasuruan Regency, Probolinggo Regency, Mojokerto City, Mojokerto Regency, Banggai Regency, and Wajo Regency. (TW/NA)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (081122135)

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