Pertamina Gas, PGN Preparing to Merge Pipeline Business

Pertamina Gas (Pertagas) and state-owned gas company Perusahaan Gas Negara (PGN) are in the process of merging their pipeline business.

"Currently we are mapping the integration of the transmission and distribution pipelines and ensuring efficiency in order to cut the gas price," Pertamina vice president of corporate communications Wianda Pusponegoro said in Jakarta on Monday, reported Jakarta Post, a local newspaper.

The idea behind the merger is to have competitive gas prices and greater pipeline access, Pusponegoro said. The merger is expected to save at least $1.7 billion.

 "It's huge enough to build pipelines in areas that have no access to gas," Jakarta Post quoted her as saying.

After the merger, which is expected to be implemented by July, PGN will become a subsidiary of Pertamina.