Natural Gas Distribution Business Activities
Distribution Networks and Coverage Distribution business is the main activity of the Company and contributed 88% to its total operating income in 2008. The distribution networks are divided into three geographical areas and each area is managed by an SBU distribution unit.
With the completion of the SSWJ pipelines in 2008, gas distribution by the Company became larger with a total of 3,480 Km and capacity of 1,013 MMScfd of distribution network. Gas distribution covered major cities in Indonesia including Jakarta, Bogor, Tangerang, Bekasi, Banten, Karawang, Cirebon, Surabaya, Medan, Pekanbaru, Batam, and Palembang reaching distribution volume of 578 MMScfd.
Gas Supply
The Company purchases natural gas to supply to its customers from gas fields owned by Pertamina and Production Sharing Contract Contractors under long term Gas Sales and Purchase Agreements.
In 2008, gas for SBU distribution area I (West Java) came from Pertamina DOH Cirebon gas field; Block Offshore North West Java (ONWJ) gas field; Jatirangon – Bekasi, gas field; EP Operation Prabumulih – South Sumatera gas field; Pertamina DOH South Sumatera and Corridor Block. Gas for SBU distribution area II (East Java) came from Offshore West Madura Contract Area, Wunut and
Maleo fields. Gas for SBU distribution area III (North Sumatera) came from Pertamina DOH Rantau and Corridor Block fields.
In addition to these gas supplies, the Company obtained supply from Husky Oil (Madura Ltd.) and ConocoPhillips/Petronas to cover gas requirements in East Java.
The Company supplies gas to its customers through high, medium and low pressure distribution pipelines. The high pressure (>4 bar) distribution pipeline is constructed with steel pipe, while the medium pressure (100 mbar – 4 bar) distribution pipeline and low pressure (<100 mbar) distribution pipeline are constructed with polyethylene pipe.
Customer
Customers are divided into three categories: residential, commercial and industrial. About 97% of customers are residential customers, while the remaining 3% are commercial and industrial customers. In terms of volume, industrial customers absorb 99% of total volume and the remaining 1% is absorbed by residential and commercial customers.The following tables compare customer data in 2008 and 2007.
Strategic Business Unit (SBU) Distribution
SBU distribution is a unit which deals directly the operation of natural gas distribution activities. SBU establishment aims to improve the network management and facility effectiveness and efficiency in SBU area, which can increase service quality towards customer satisfaction as well as speeding up penetration and market expansion.
SBU Distribution Area I, West Java
SBU Distribution Area I, West Java has seven districts, Jakarta, Banten, Bekasi, Karawang, Bogor, Cirebon, and Palembang, and the sub district of Bandung. The total network length is 2,169 Km. The following table shows customer composition and total.
SBU Distribution Area II, East Java
SBU Distribution Area II, East Java has four districts, Surabaya, Sidoarjo-Mojokerto, Pasuruan-Probolinggo, Semarang and the subdistrict of Makassar. The total network length in SBU II is 700 Km.
SBU Distribution Area III, North Sumatera
SBU Distribution Area III, North Sumatera has three districts: Medan, Batam, and Pekanbaru with a total network length of 611 Km.
Customer Services
In order to improve the quality of service to the customers, the Company has developed Customer Call Center on 600645 that receive complaints from public or customers. All incoming complaints will be forwarded to the related departments for futher handling.
The Company also proactively holds event as part of its customer services including gathering with customer that aim to socialize the natural gas utilization, visiting potential customers to prepare industrial customers readiness on national gas delivery, visiting existing customers to follow up complaints, regular maintenance and pipe monitoring. Several events held in 2008:
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