JAKARTA (Yosefardi) – State gas distributor PT Perusahaan Gas Negara (PGN) Tbk (PGAS) allocates capital expenditure (capex) of US$1.25 billion, equivalent Rp15 trillion, for this year, doubled from last year’s capex.
The capex will be used for pipe development which costs Rp2 trillion and LNG business at cost of Rp5 trillion. The rest capex aims to fund the development for existing production areas and infrastructure.
PGN has diversified its business as now it also develop floating storage and regasification unit (FSRU) and manage the oil and gas blocks.
PGN had last month acquired 75% ownership in Ujung Pangkah block from Hess Corporation for US$650 million. PGN is also in the process to acquire 8.91% interest in South East Sumatra Block. It earlier acquired 30% interest in Bangkanai Block, 20% in Ketapang Block, and 5% in Lematang-Petar Block.
Media earlier report state oil and gas company PT Pertamina will control 66-78% stake in the merger entity of PT Pertamina Gas (Pertagas) and PGN. The acquisition by Pertamina will take 8 months and the merger entity is expected to contribute revenue of US$2-3 billion per year to the state.