Indonesian gov't promises to boost gas infrastructures

19:53, June 30, 2010      

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Indonesian Vice President Boediono said Wednesday that the government would boost development of gas infrastructures to speed up distribution of the commodity for industry.

The statement comes as the government has declared to lessen the dependency on fossil fuel and rely more on other energy sources, including gas, which has been abundant in the country.

The vice president said that problem on infrastructure has impact on the efforts to accelerate economic growth.

"The slow in the development of gas infrastructure has caused huge impact on economy," Boediono said.

He said that the government would boost the building of gas pipelines and terminals to accelerate transportation of the commodity.

The government plans to increase the use of gas by up to 27 percent by 2025 from the initial plan of 26 percent, according to the country's master plan of energy use.

The lack of gas supply has drawn concern among industries in Indonesia.

"Receiving terminals have been built. These all aim at deleting obstacles on infrastructure," said Boediono.

Indonesia's gas consumption stood at 11.5 percent in 2008, outstripping the rate of growth of gas production which reach 2.7 percent annually.



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