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Indonesia's Pertamina to take over state gas utility PGN in Q1 2018


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JAKARTA, Dec 7 (Reuters) - Indonesian state energy company Pertamina will take over government gas utility PT Perusahaan Gas Negara (PGN) in the first quarter of 2018, the state-owned enterprise ministry said, part of a plan to form a new holding company.

As part of the plan, PGN will first absorb Pertamina gas unit Pertagas, Deputy SOE Minister Edwin Hidayat Abdullah told Reuters on Thursday.

"Pertagas will be part of PGN, so that there's no duplication of gas pipelines," Abdullah said.

PGN corporate secretary Rachmat Hutama said in a statement that the new energy holding company would "prevent dualism in the upstream management of domestic natural gas."

"In addition to accelerating the development of integrated gas infrastructure, this unification can achieve a more equitable distribution of gas," said Hutama.

Under the plan, a 57-percent government stake in PGN would be transferred to Pertamina, Hutama said, adding that details of the transition were still subject to discussion.

The plan for Pertamina to take over PGN to simplify management of gas infrastructure in Indonesia dates back to at least 2013.




This article appears in: World Markets , Stocks , Oil , Commodities
Referenced Symbols: PGAS


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