Support Pertamina's Energy Transition Program, PGN Optimizing Natural Gas for Land Transportation and Traditional Fishing Boats

Yogyakarta, December 14, 2022 - Natural gas is an energy transition, and Indonesia still has sufficient natural gas potential as a more efficient and environmentally friendly energy source. This momentum is used by PT PGN Tbk, as Pertamina's Gas Subholding, to make natural gas an alternative energy fuel for motorbikes, traditional fishing boats, and four-wheeled vehicles in the next five years.

"The natural gas program for land transportation and traditional fishing boats will use CNG. We project that this program will optimize  Pertamina's SPBG utilization, which was built using independent funds and the state budget. 35 SPBGs will be gradually reactivated. Currently, three revitalized units in Semarang," explained President Director of PGN, M. Haryo Yunianto, in his presentation at the Energy Sovereignty Webinar at UII Yogyakarta (13/12/2022).

Haryo explained that the conversion target for motorcycles was 100 thousand units. The CNG cylinder size measures 14 x 53 cm. This size is compact enough for safe placement on the left and right steering columns without compromising driving comfort.

Tubes from steel and high safety standards have a 2.5 liters capacity equivalent to premium (LSP) and could support up to 100 km travel distance on one full charge.

"The main CNG composition for motorcycles is methane, which is clean and high-octane, could provide good engine performance and environmentally friendly exhaust gases," Haryo said.

Haryo added the BBM conversion to BBG on motorbikes can increase welfare because the potential for saving fuel prices is up to 55%, equivalent to IDR 6.9 million per year (4 liters fuel consumption on pertalite/day). The fuel subsidies burden and dependence on fuel imports could be reduced equivalent to 125 thousand kilo liters per year.

Meanwhile, regarding the conversions for four-wheeled vehicles, PGN projects 1,000 trucks/buses and 18,000 small vehicles. It is reliable with a concrete form where CNG has been used by vehicles such as taxis, auto rickshaws, and Trans Semarang buses.

Further, for fishing boats the quick win conversion target is 6.71 BBTUD for 30,000 fishing boat units. This program for fishers is schemed using a Gaslink Cylinder with a 4.2 LSP capacity. With high safety standards, it supports up to 50 Km travel range in 50% Dual Diesel Fuel (DDF) operating mode for one sailing day.

Similar to CNG for motorcycles, CNG for fishing boats is composed of high-octane methane so it gives good engine performance and is environmentally friendly. In addition, it provides the potential for fuel savings of up to 30%, equivalent to IDR 7.2 million per year (10 liters of diesel consumption fuel per day).

"The gas supply needed for transportation BBG is approximately 40 BBTUD in 2027. Meanwhile, its consumption is estimated to increase to 410 million LSP. The continued impact will save the state budget to reduce subsidized fuel up to IDR 1.25 trillion per year, assuming a fuel subsidy of IDR 3,000 per liter," Haryo said.

According to Haryo, the increase in global oil and domestic fuel prices is the right momentum for optimizing natural gas. In addition to improving SPBG's business performance, PGN's natural gas acceleration as BBG will save the community, energy subsidies, and state foreign exchange.

"In principle, we want to improve the national CNG program for land vehicles and fishing boats thus people have cheaper and environmentally friendly alternative energy, it is hoped that it can improve people's welfare," he concluded.**

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