Tender Procurements and Contract Opportunities Indonesia

JAKARTA. Domestic gas consumption continues to increase each year especially in industrial sector in order to minimize production costs and increase efficiency so that the machine can compete with other countries. Another reason the transfer of fuel to gas, the price is very competitive and relatively stable and more friendly environment.

In the last five years, the total gas consumption continues to rise. In 2005, gas consumption reached 3541 MMSCFD, a year later increased to 3716.1 and 2009 recorded MMSCFD MMSCFD 4233.7. The increase of gas consumption, mainly in the sectors of fertilizers, electricity and other industries.

For the fertilizer sector, gas consumption in 2005 amounted to 539.1 MMSCFD. In 2009, consumption increased to 619.6 MMSCFD. Electricity sector, gas consumption in 2005 reached 480.1 MMSCFD, increased to 502.3 MMSCFD in 2007 and rose to 634.3 MMSCFD in 2009.

While for other industries, its gas consumption in 2005 was recorded at zero, in 2007 it jumped to 128.7 MMSCFD and in 2009 rose to 494.2 MMSCFD.

Management of the national gas policy is to use natural gas for domestic needs are prioritized by considering the availability of infrastructure, the magnitude of reserve and economic evaluation namely the priority order to increase oil and gas production, as raw material for the fertilizer industry, as the supply of electricity and as fuel or raw materials for industry other.

To enhance the ability of distributing gas from the supply source to the user, the Government aim to develop and strengthen the reliability of transmission and distribution pipelines in the region of PT PGN, which consists of the SBU DW I, West Java, DW SBU II Eastern Java, DW III SBU Northern Sumatra Transmission of Sumatra and Java.

Currently a major project is underway, among others, the completion of distribution channels Bojonegara-Serpong, construction of CNG stations, distribution network development field and build LNG receiving terminal in West Java and North Sumatra. (SF)

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