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Capturing Opportunities from Small "Last Mile" Customers

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2017511511 (GFP S2)Available

Publisher :IPMI International Business School , 2017

Increased utilization of domestic natural gas requires integration between gas production planning, market development and infrastructure development. Utilization of natural gas recently still not optimum because almost half of all domestic gas production still to be exported. One of the challenges in the utilization of domestic gas is the availability of infrastructure which is still limited and high.Prospective customers who are in certain locations, although near to the existing PGN network still receive high capex financing schemes. This prospective customer is called the last mile customer.With the increasing of demand for natural gas and with the existing of 111,405 Customers and 797,69 Bbtud Gas Sales, PGN since 2016 have set the Investment Policy for Potential Customer, that “each of Potential Customer must meet the IRR before PGN can invest in building the required infrastructure to deliver the gas to the potential customers”. Previously, the IRR policy was counted per Sales Area/Region.The CAPEX and OPEX of the project is quite flexible, but as PGN has also its standard or company code, reducing the cost of this activities will reduce the quality of the systems or facilities, therefore will could also reducing the safety of the system. And again it will break the PGN policy in safety. The other possibility is by increasing the revenue by adjusting the gas price.General environment analysis began by gathering information & identifying factors relavant to this field project. The information was collected through numerous internal and external sources such as internal PGN’s Operating Procedures, databases, literature & websites.Analysis from data conclude that Developing Last Miles Potential Customer Through New Gas Price or New “efficiency program” by PGN-Subsidiary are potentialy to implemented for the “Not Feasible” Potential Customer that are using LPG or Diesel as their existing fuel source.

Supervisor: Sonny W. Antonio

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