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Indonesia unveils ambitious residential gas connection programme

The Indonesian Energy and Mineral Resources Ministry has outlined a new programme meant to develop the residential gas network. It aims at accelerating the yearly rate of new connections to the gas network, which currently ranges between 70,000 and 80,000 connections per year, to

nearly 1 million new connections per year, in order to reach 4.7 million of new connections between 2019 and 2024. The government seeks to reduce the consumption of liquid petroleum gas (LPG), which averages 6.5 Mt/year and of which around 60% is imported.



In 2018, 89,000 households were connected to the gas network, of which 54,300 connections were implemented by state-owned gas company Perusahaan Gas Negara (PGN). The government expects to connect more than 78,000 households to the gas distribution network in 2019.



The Indonesian gas distribution network is over 5 000 km long (2017), mainly in Java and North Sumatra. The domestic natural gas consumption has been increasing by 3.6%/year since 2008 to 45 bcm in 2017. The share of the residential market is quite small and most of the fuel is used for the industry and the power sector.

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