PGN Starts Development Of Provision Of LNG Bunkering Services At Bontang And Arun Terminals

Illustration of the LNG PGN ship (Photo: Doc. Antara)

JAKARTA - PT PGN Tbk initiated steps to develop the provision of LNG Bunkering Services.

PGN's Director of Infrastructure and Technology Achmad Muchtasyar said, Liquified Natural Gas (LNG) is fossil energy that has great potential to be utilized as environmentally friendly fuel for ships.

The use of LNG as ship fuel can reduce greenhouse gases by up to 23 percent when compared to current oil-based fuel. PGN is working on strategic initiatives related to LNG Bunkering Services, namely LNG Bunkering Terminals and LNG Bunkering Vessels.

"LNG Bunkering Terminals has been designed since July 2022 with the Bunkering beach-to-ship scheme. The terminals that have the potential to be developed for this initiative are the Bontang LNG Terminal and the Arun LNG Terminal," said Achmad, Friday, October 20.

Meanwhile, LNG Bunkering Vessels, he said, implemented aship-to-ship Bunkering scheme. The initiative, which was designed in December 2022, has the potential to be developed at a number of port points in Batam, Tanjung Priok Cilegon, Tanjung Perak, Bali NTB, Makassar East Kalimantan, and Teluk Bintuni.

"Currently, LNG is the best choice as an alternative fuel for ships in order to reduce emissions. In addition, there is the availability of LNG infrastructure in Bontang which is located on the ALKI II route that crosses the Lombok Strait towards the Makasar Strait, this route is more efficient for shipping from Australia to East Asia and vice versa. The key factor for success in providing LNG Bunkering is the role of all stakeholders to create a shared commitment," explained Achmad.

He added that the Indonesian Archipelago Sea Lane (ALKI) is a flow that is determined to connect two free waters, namely the Indian Ocean and the Pacific Ocean. This sea lane is stipulated for the implementation of the Archipelago Sea Lane based on international law conversion. All foreign ships and aircraft passing north or south must cross the ALKI.

ALKI is divided into 3 (three) namely ALKI I, ALKI II, and ALKI III. As previously stated, ALKI II is the shortest international shipping route between Australia and Asia Pacific, making it more efficient at around 17 percent.

This condition became an enabler for the LNG Bunkering initiative at the Bontang LNG Terminal as a potential alternative in the Malacca Strait.

"With the existing opportunities for LNG Bunkering Service, the synergy of all stakeholders is essential. It is not limited in terms of providing LNG and its infrastructure. But it is also related to engine & fuel conversion on ships, certificate of compliances, legal & permitts, to policies from the government that are supportive of LNG Bunkering Services," added Achmad.

Achmad added, in addition to adding a business portfolio, PGN upholds the value of more than LNG as an alternative to environmentally friendly energy for ship fuel. More than 85 percent of LNG's composition is methane (CH4) which has the lowest carbon.

"So LNG Bunkering services are expected to increase the use of natural gas towards achieving the NZE 2060 target and facing climate change," he concluded.