Government Targets 5.5 Million Customers To Be Served By Gas Network

Dok; DNV

Government Targets 5.5 Million Customers To Be Served By Gas Network

Friday, 13 Dec 2024

The Deputy Minister of Energy and Mineral Resources, Yuliot, stated that the oil and gas sector is crucial for energy provision to the public. He emphasized that the downstream activities in the oil and gas sector are essential for enhancing energy resilience, aiming for energy self-sufficiency in line with President Prabowo Subianto's targets.

To this end, the government is working to increase the utilization of natural gas in both industrial and residential sectors by establishing a gas network. "As of September 2024, there will be 703,000 household connections from the state budget gas network and an additional 400,000 from non-state budget sources," Yuliot mentioned in a written statement on Friday, December 13, 2024.

The Ministry of Energy and Mineral Resources aims to serve 5.5 million customers through the gas network to reduce LPG imports by 2030. "This could save approximately Rp 5.6 trillion in subsidies annually," he added.

Currently, the government is prioritizing domestic gas by integrating gas pipelines across Sumatra and extending these pipelines to Java. This initiative aims to channel the natural gas potential from the Agung Working Area and the Andaman Aceh Working Area for downstream utilization.

Yuliot noted that this integration is being carried out through investments in the construction of the Cisem and Dusem gas pipelines. "The development of these gas pipelines will support more affordable gas prices with lower toll fees, meeting the gas needs for industries, power generation, commercial use, and households, while also supporting the Gas Network Program," Yuliot explained.

On another front, the government is implementing the B35 biodiesel program and plans to launch B40 and B50 biodiesel. Erika Retnowati, Head of the Downstream Oil and Gas Regulatory Agency (BPH Migas), believes that the downstream oil and gas sector must be considered during the energy transition. "In supporting the energy transition, which involves a shift towards the use of clean, environmentally friendly, and sustainable energy sources, the role of downstream oil and gas should remain a focus and is worth discussing," Erika stated. (deriz@insightinnews.com)

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