PGN to become Pertamina subsidiary

Indonesia

JAKARTA, June 28, 2016 – Indonesian state-owned gas entity Perusahaan Gas Negara (PGN) will be integrated with Pertamina subsidiary Pertamina Gas, the country’s state-run oil and gas company announced on Monday.

A major component of the process will be the merger of the two companies’ pipeline networks, which is expected to result in savings of more than USD 1.7 billion. The financial room created by synergies will be directed towards the construction of additional pipelines “in areas that have no access to gas,” Pertamina vice-president of corporate communications Wianda Pusponegoro said.

“Currently we are mapping the integration of the transmission and distribution pipelines and ensuring efficiency in order to cut the gas price,” Pusponegoro said of the plans, which are awaiting the necessary government regulation. The company expects to be able to implements its plans in July.

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