Jakarta Post: PGN allots $800m in Capex This Year for Pipeline Projects

State-run gas distribution company Perusahaan Gas Negara (PGN) is planning to disburse some US$800 million in capital expenditures (capex) this year, with most of the funds going to gas-pipeline projects.

In a statement published at the Indonesia Stock Exchange (IDX) on Tuesday, PGM said the $800 million in capex would be spent on infrastructure and its subsidiary companies.

“About $400 million to $500 million will be allocated for transmission and distribution pipeline projects, which can be multiyear projects depending on field conditions, permits, the gas-distribution condition and the country’s global economic condition. The remainder will be investments in our subsidiaries,” PGN corporate secretary Heri Yusup said.

That figure is similar to the company’s 2014 capex, when it allotted $500 million for the construction of gas networks.

“The 2015 capex was made based on oil prices in 2014. We can still adjust the amount depending on the oil prices and the economic condition,” Heri said. MORE