President Director of PGN Jobi Triananda Hasjim noted in a statement here, Wednesday, that the additional supply of gas will be channeled to Dumai in Riau Province.
The gas purchase agreement was signed by Hasjim and ConocoPhillips President and General Manager Bajian Agarwal on the sidelines of the Indonesian Petroleum Association convention on Wednesday.
"The signing (of the agreement) has demonstrated the governments support to the upstream company PGN to expand the use of natural gas, which is efficient and environmentally friendly," Hasjim stated.
Under the agreement, gas supply will be channeled from 2018 to 2023.
Hasjim added that gas production of ConocoPhillips will be distributed to the public through a gas distribution pipeline in Dumai.
Currently, the company is finalizing the 137-kilometer(km)-long Duri gas distribution pipeline project, which is expected to be completed in 2018.
In addition to the distribution pipeline, PGN has worked jointly with state-run oil and gas firm PT Pertamina to develop the 67-km-long Duri-Dumai transmission pipeline project.
"In addition to Duri-Dumai, PGN has constructed gas pipe infrastructure in Riau, West Java, East Java, and some other regions," Hasjim explained.
So far, the company has developed and operated more than 7,200 km of natural gas pipelines, or 80 of the total length of downstream gas pipelines throughout the country.
PGN has also operated two floating storage regasification units, 11 gas fuel stations, and four mobile refueling units.
"We have channeled gas to citizens in 19 cities in 12 provinces. To materialize this endeavor, PGN has relied on its own funding capability, so that we do not rely on the state budget," Hasjim added.
(Reported by Kelik Dewanto/Uu.S022/INE/KR-BSR/O001)