Jakarta. State-owned gas company Perusahaan Gas Negara (PGN) is set to invest around Rp 50 billion ($3.3 million) in the development of a gas piping network within the new national capital, Nusantara, located in East Kalimantan.

The gas piping systems will be seamlessly integrated with the multi-utility tunnels that are currently under construction by the government, PGN's Chief Executive Officer Arief Setiawan Handoko said on Monday.

PGN's plan involves supplying compressed natural gas from its refineries in Balikpapan and Bontang, both located in East Kalimantan, to government and commercial buildings, as well as residential complexes in Nusantara.

Initially, the project will focus on the central area of Nusantara, with plans for expansion to accommodate the city's growth in the future.

“The project's construction phase has already commenced and is anticipated to be completed by June 2024,” Arief said. 

Moreover, PGN aims to eventually connect its pipeline network to all buildings and public facilities in Nusantara, aligning with the master plan of the new capital city.