Length of Indonesia's Open Access Gas Pipelines 2014-2030

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04/08/2016 14:20 WIB

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Length of Indonesia's Open Access Gas Pipelines (2014-2030)

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Length of Indonesia's Open Access Gas Pipelines 2014-2030

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Length of Indonesia's Open Access Gas Pipelines (2014-2030)

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The government plans to more than double the length of the joint gas transmission pipeline (Open Access) by 2030. The government ensures that the utilization of the open access pipeline will be in accordance with Law Number 22 of 2001 concerning Oil and Gas (Migas).

According to data from the Ministry of Energy and Mineral Resources, the longest pipeline currently in operation is operated by PT Perusahaan Gas Negara (persero) Tbk (PGN). The length of this gas pipeline reaches 2,400 km out of a total of 6,470 km owned. This PGN pipeline accounts for 76 percent of the total natural gas pipeline in Indonesia.

Based on an analysis of 40 doctoral dissertations published in international journals, the Head of the UGM Energy Studies Center, Deendarliant, concludes that open access and unbundling in gas pipelines will actually increase the selling price to consumers. However, the increase in the selling price of gas is determined by market mechanisms, so it can also cause fluctuations that trigger price instability.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."