PGN Builds 24,000 Household Gas Pipelines for Surabaya in 2016

Wednesday, 17 May 2017 , 15:00:00 WIB - Advertorial

PGN´s gas pipeline (ANTARA)

PT Perusahaan Gas Negara has completed the development of 24,000 household gas pipelines for Surabaya in 2016. The information was delivered by the Energy and Mineral Resources Minister Ignasius Jonan when he was inaugurating the development of household gas pipeline at Penjaringan Sari low-cost apartment, Rungkut, Surabaya, last Sunday (7/5).

"Thank you for the hard work of PGN, Surabaya Administration, and all parties who make this come true. The development aligns with the President’s instruction to help people," Jonan said in his speech.

The effectivity and efficiency of natural gas are the reasons why PGN keeps building natural gas pipelines for households. Natural gas is cheaper than Liquefied Petroleum Gas (LPG) so the government could cut the subsidy.

Jonan said the usage of natural gas could reduce the import of LPG so the state could save about Rp1.5 billion per year or Rp18 billion per year. "If we use natural gas, the bill that has to be paid by one household would only reach about Rp15,000-20,000 per month," Jonan said.

Jonan said that the natural gas for Surabaya is supplied by PT Pertamina Hulu Energi (PHE) West Madura Offshore with the gas allocation of 0.6 mmscfd. The total length of pipeline that was built to distribute the gas to 24,000 households reaches more than 196 kilometers.

The development of 24,000 household gas pipelines in Surabaya was funded by the 2016 State Budget (APBN) worth Rp221.9 billion. The development continues the previous program in 2009, which built 2,900 household gas pipelines.

The pipelines development that uses the State Budget (APBN) has been initiated since 2009, and 185,991 household gas pipelines in 14 provinces, 26 regencies/cities. The pipelines development is a part of the National Mid-Term Development Plan (RPJMN) for the period of 2015-2019 because it could fulfill the needs for clean, cheap, eco-friendly, and efficient energy.

Mayor of Surabaya, Tri Rismaharini, confirmed Jonan’s statement about the abundant natural gas supply. Risma said that Micro, Small and Medium Enterprises (MSMEs) in Surabaya that uses natural gas can save 30-35% per month compared to those who use LPG. Households can also save 20-25% per month.

"Natural gas is safe, cheap, and you don’t have to worry about running out of gas. You pay after you use them. You don’t have to spend time buying LPG cylinders. I see some people carrying 10 LPG cylinders on a motorbike like they’re carrying watermelons," Risma said.

The 24,000 household gas pipelines in Surabaya comprise of 8,637 pipelines in South Surabaya, 7,578 pipelines in East Surabaya, and 7,800 pipelines in Central Surabaya.

Meanwhile, the President Director of PGN, Jobi Triananda Hasjim, said that the development of the 24,000 pipelines in Surabaya spent 10 months. Jobi said the development had to ‘damage’ the road and parks in Surabaya.

"We’re sorry that the development of the pipelines damaged the roads and parks because we had to plant the gas pipelines, it couldn’t pass them like cables. However, we have fully recovered the damages," Jobi said.

PGN doesn’t want to stop there. PGN would continue the development if they were given the responsibility.

"PGN is ready to carry out the tasks given by the government in developing natural gas infrastructure, one of them is household gas pipelines," Jobi said.

This year, PGN is assigned by the government to build 26,000 household gas pipelines spread in Musi Banyuasin Regency, Bandar Lampung City, Jakarta, and Mojokerto City.

Jobi also said that PGN is also committed to expand gas infrastructure, and improve the utilization of natural gas in many regions without using too much fund from the State Budget (APBN).

"Now, PGN has distributed natural gas to 10 cities in 12 provinces through 7,278 km gas pipelines, 2 Floating Storage Regasification Units (FSRUs), and 10 natural gas stations," Jobi added.

One of Penjaringan low-cost apartment (Rusunawa) residents, Sari Suyati, also said that natural gas is cheaper. Jonan, Risma, and Jobi visited Suyati’s room that’s located on the second floor. Suyati showed a cooking demonstration by using natural gas. Although the pipelines were just inaugurated, the residents of the apartment have been using natural gas in the last three months.

"Using natural gas is more convenient and cheaper. The fire is blue. When I used LPG, I spent Rp34,000 for two LPG cylinders. Now, I only have to spend Rp27,000, I save Rp7,000," Suyati said.

However, cheap is not the only reason why Suyati prefers using natural gas. Suyati also said that she doesn’t have to carry the heavy LPG cylinders anymore.

"It was inconvenient back then, I had to go downstairs and carry heavy gas cylinders. Fortunately, I live on the second floor, it would be more inconvenient for those who live on the fourth floor. Besides that, I don’t have to worry that I would run out of gas when I’m cooking," Suyati said.