JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) encourages the use of liquefied natural gas or liquefied natural gas (LNG) retail as an alternative fuel in the midst of abundant domestic gas supplies and high dependence on LPG imports.
Expert Staff of the Minister of Energy and Mineral Resources for Commercialization and Oil and Gas Transportation, Satya Hangga Yudha Widya Putra, said that Indonesia currently has a gas production surplus of 2,500 MMCSFD which has the potential to be utilized for the transportation and logistics sectors.
"The utilization of LNG is a potential transition option to replace fuels such as solar and Pertalite," said Hangga as quoted by ANTARA, Tuesday, May 26.
According to him, the national supply of LNG is projected to continue to increase as a number of major oil and gas projects enter, ranging from the Andaman-Arun Block, the development of Bontang through Geng North, the Geliga and Gula Blocks, the Genting FLNG, to the INPEX Masela project.
On the other hand, Indonesia still faces the problem of LPG deficit because domestic production is only able to meet about 20 percent of national needs.
SPM Saxa Wiza Reyhan's director said Indonesia currently produces up to 28.8 million tons of LNG per year with a national capacity of 35.9 MTPA.
However, at the same time, LPG imports still reached 6.91 million metric tons.
"Optimizing domestic LNG can be a strategic solution to strengthen national energy resilience," he said.
As an implementation, Elenji introduced non-pipeline retail LNG through a 175-liter liquid gas vessel (VGL) tube to replace non-subsidized LPG in the industrial and commercial sectors.
According to the company, one VGL cylinder is equivalent to two 50-kilogram LPG cylinders with a number of advantages such as smaller space requirements, low pressure, operational efficiency, and fewer refilling frequencies.
SPM President Commissioner Marcus Daniel Lelerury said the VGL-based LNG system is also more flexible because it can be distributed without a pipeline network.
"This model is portable, modular, scalable, and suitable for inter-island distribution using ships and tank trucks," he said.
SPM also claims that the use of LNG at the SPBG Gandul, Cinere, Depok facility is able to reduce industrial energy costs by 26 percent.
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