Pertamina Pioneered the LNG Utilization for Transportation and Household

Oleh Administrator
Selasa, 07 Agustus 2012 09:42
JAKARTA - PT Pertamina (Persero) starts pioneering the utilization of
Liquefied Natural Gas/LNG for transportation and household fuel sectors.
Hopefully, it could suppress BBM consumption, decrease subsidy and save
State Income. As a form of commitment in pioneering the LNG utilization for
transportation and households, Pertamina through the subsidiary PT Badak
NGL today tested the LNG utilization for company's operational vehicles.
Besides, the test was also performed in three units of household stoves.

"
Today is the initial step of LNG utilization for transportation and household
sector. Starting from the operational vehicles of Badak NGL, hopefully it will
be able to be a good example in the future and it could extend the LNG
utilization, both for transportation and household. Pertamina is committed to
be more completing the needed infrastructure for the success of LNG
utilization for household in the future," said the President Director of
Pertamina, Karen Agustiawan when witnessing the test of LNG utilization in
PT Badan NGL, Bontang via videoconference.

Previously, the LNG business paradigm oriented to export, but now is

changing since the operation of Floating Storage Regasification Unit
Nusantara Regas 1 on May 24th, 2012, as the first receiving, storing and
LNG regasification terminal in Indonesia, serving gas need for PT PLN.
Answering the domestic LNG era, the enhancement of some application for
LNG utilization in domestic is widely opened, including those for
transportation and household.
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Pertamina Pioneered the LNG Utilization for Transportation and Household
Oleh Administrator
Selasa, 07 Agustus 2012 09:42

Based on statistic data of NGV Global, currently there are approximately 15

million of gas-fueled vehicles operating in the world. The record was done
towards all gas-fueled vehicle types of LNG, CNG, and LGV. Comparing to
gasoline and diesel oil, LNG is more environmentally friendly because it
could decrease emission for 85% and comparing to CNG, LNG has energy
density value three times bigger in the same volume. LNG could be stored in
low pressure (1 atmosphere) and has longer distance.

Besides, the LNG utilization as a fuel will also decrease the operational cost
because LNG price is cheaper than non-subsidized diesel oil. The LNG price
is 18-20 US$/Mmbtu, while non-subsidized diesel oil is about Rp 9.807/liter
or equivalent to 31 US$/Mmbtu. LNG suits to be used for large-sized
vehicles of far distance such as bus, truck, and locomotive or for marine
transportation sector.

Pertamina through its subsidiary, PT Pertamina Gas and PT Badak NGL

start to work on the LNG market potency, especially for mining trasportation
in Kalimantan. As an initial step, both have cooperated with PT Indominco
Mandiri, one of big coal mining company operated in Kalimantan, as the
LNG end user.

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Pertamina Pioneered the LNG Utilization for Transportation and Household
Oleh Administrator
Selasa, 07 Agustus 2012 09:42
In commissioning stage, is targeted to start by December 1st, 2012.
Four-inpit dump truck Indominco will utilize LNG as its fuel by predicted LNG
consumption approximately 60 Mmbtud. If it is fully implemented, there are
about 84 high dump trucks using LNG as fuel need approximately 3, 97
Bbtud.

The LNG utilization potency in coal mining sectors in Kalimantan is predicted

approximately 0, 62 million ton per year. The prediction is based on the
assumption that the consumption level of non-subsidized diesel oil of four
big coal mining companies operated in the area reach 1, 62 million Kiloliters
per year.

In national scale, the diesel oil market potency in domestic in 2012 is

approximately 16, 3 million Kiloliters and some is received through import. If
20% of it is converted to gas, it will save State Income minimally for US$ 1,
43 billion per year.

LNG is not only applicable for transportation sector but also applicable as
alternative energy for substituting LPG in household. In some countries,
natural gas has been usually used as fuel for household stoves because it
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Pertamina Pioneered the LNG Utilization for Transportation and Household
Oleh Administrator
Selasa, 07 Agustus 2012 09:42
more guarantee the security and the produced emission cleanness
comparing to LPG. LNG is also cheaper than LPG, which is approximately
US$ 2 per Mmbtu. For the same energy value, the volume of LNG is less
14% than LPG.

Some supporting infrastructures are needed to realize it. The LNG station
development in some Indonesian areas depends on some other Pertamina
projects such as FSRU and Mini LNG.

The FSRU construction is needed to guarantee the LNG supply in big

market areas, however the lack of gas supply such as in West Java or areas
have no gas resources such as Central Java. Besides, Mini LNG Plant is
needed to fulfill LNG demand in areas close to the small-scale gas resource.
(AK)

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