Natural Gas Is Important For Decarbonization Of Transportation And Tourism

Illustration of Gas Pipes (between)

JAKARTA - Indonesia plans to reduce greenhouse gas (GHG) emissions by 29 percent by 2030. This is done by significantly reducing the use of fossil energy (BBM), and further accelerating the transition to new and renewable energy (EBT).

The energy transition in Indonesia needs to be accelerated, in addition to fulfilling the Paris Agreement (2015) commitment, it also leads to the achievement of the green and blue sky, as targeted by the Government under President Joko Widodo.

For this reason, it is necessary to guide in the form of roadmaps and regulations, considering that this is directly related to the issue of climate change.

Efforts that can be taken in climate change mitigation include reducing the amount of GRK (cash gas) emissions in a number of sectors, especially the transportation and tourism sectors.

Efforts to increase the absorption of GRKs, generically commonly referred to as decarbonization'. Good news regarding decarbonization, especially in the transportation and tourism sector, can be seen in the Bappenas report, with the title Low Carbon Development: Paradigm Change Towards a Green Economy in Indonesia (March 2019 edition).

The report is a government guide that provides confirmation that economic development and improving welfare until 2045 (a century of the Republic of Indonesia), is carried out based on low-carbon commitments.

This means that all parties are optimistic enough to be able to fulfill the Paris Agreement commitment and look to the green economy more quickly.

Gasku Products

Citing Antara, the decarbonization of public transportation should ideally also be supported by electricity supply from EBT (new and renewable energy) sources.

Several countries have set a schedule for stopping the use of fossil energy and countries known to be very aggressive are Norway, Denmark, and Sweden, which is around 2030, while China and Japan set 2050.

Electrification of transportation without replacing fossil fuel electricity supply will not actually contribute to climate change mitigation. Public transportation policies will not reduce emissions significantly if they are not supported by EBT-sourced power plants.

The decarbonization of the transportation sector is urgent to run, based on the fact that its energy demand has increased significantly, in line with economic growth and the increase in population.

Decarbonization of transportation can be done by shifting from private vehicles to public transportation, with records of public transportation fueled by environmentally friendly energy, such as gas and biofuels, to then shift to complete electrical energy.

Pertamina as a state-owned enterprise in the energy sector, contributes significantly to the decarbonization of the transportation sector. Through PT PGN Tbk (Pertamina Gas Subholding), introducing natural gas utilization products for transportation, with Gasku brands. Gasku is a gas fuel (BBG) for vehicles.

Gasku products are in a complementary position in connection with PGN's plan to launch a comprehensive natural gas (CNG) conversion pilot project for 300 motorcycles in Jakarta and Semarang. The conversion program will run PGN throughout the first quarter of 2023.

According to PGN Finance Director Fadjar Widodo, Gasku offers more value to users, which is to be more efficient than fossil energy, and what is clear is environmentally friendly.

Travel is also more competitive than other vehicles. Therefore, Gasku can be an energy choice during the transition period towards the use of EBT (new renewable energy).

Gasku has good prospects for cost efficiency, when PGN provides BBG at a price of IDR 4,500 per liter equivalent to premium (LSP), the price range is still affordable for consumers in general.

For vehicles that have been converted using Gasku, they can still use fuel, considering that the fuel operating system is dual fuel (fuel and gas combination), such as the HEV (hybrid electric vehicle) model.

In practice on the way, each vehicle will be installed a converter kit, to be able to use the CNG stored in the tube.

By using Gasku, motorists can be flexible in choosing fuel, meaning they can save money. Moreover, Gasku will increase the number of fuel supplies, so that the distance will be further.

The use of Gasku on motorcycles can save up to 55 percent of fuel, or the equivalent of IDR 5 million per year (consumption of 2.5 liters of pertalite fuel per day).

In addition, it also has an impact on reducing the burden of fuel subsidies, and dependence on imports of fuel equivalent to 91 thousand kilo liters per year (for 100,000 motorcycles).

Similar to the conversion of gas to logistics vehicles and motorcycles, the conversion of BBG for four-wheeled passenger vehicles also provides efficiency.

In this vehicle, the efficiency obtained is 55 percent or equivalent to Rp. 30 million per year. Per vehicle unit, the volume of gas usage is 15 liters per day.

The conversion of BBG that has been carried out is in the logistics vehicle transporting Pertamina's fuel with a dual fuel system. The cost efficiency obtained is up to 54 percent and the emission reduction is 20 percent. The converter installation is carried out at the SPBG or MRU (mobile refuelling unit).

In terms of composition, natural gas is high-octane and low-emission methane, making BBG emissions a low-emission fuel of up to 20 percent.

Indonesia has a high potential for natural gas reserves. However, it has not been utilized optimally for transportation. It's time for Pertamina's Oil and Gas Holding through Pertamina's Gas Subholding, to be able to contribute complementaryly in the form of natural gas for transportation

Decarbonization of the tourism sector

A subsidiary of PT Pertamina (Persero), namely PT Pertagas Niaga, is ready to supply natural gas for the needs of the tourism sector in Bali.

The choice of Bali as the pilot project location for the decarbonization of the tourism sector, is to support the eco-tourism of the Bali area, which will become a model of tourism based on clean and renewable energy in the future. Bali was also chosen because it has always been a concern for the international community and Bali is considered the front home of Indonesia.

The use of blue energy is expected to support the campaign efforts of the tourism sector in Bali, which is currently carrying the concept of green eco sustainability.

The company targets to be able to supply liquefied natural gas (LNG) to tourism infrastructure, such as hotels and restaurants with a total of 12,000 million British thermal units (MMBTU) every month.

This target is the company's effort to invite the hotel industry on the Island of the Gods to switch to blue energy through the LNG ISO Tank.

It is hoped that through this effort, the hotel industry in Bali can be cleaner than petroleum gas (LPG), which has been used to support the operation of hotel and restaurant kitchens.

Efforts to use clean energy through the use of natural gas have become a trend in the tourism sector in Bali.

PT Perusahaan Gas Negara Tbk (PGN), Subholding Gas Pertamina is ready to supply the needs of five-star hotels in Bali, which have begun to seriously use cleaner energy.

In addition, the world's demands regarding commitment to reducing carbon emissions contributed to the demand for natural gas in Bali. The impact can be converted into a product or service service that prioritizes environmentally friendly aspects.

The distribution of natural gas in Bali is carried out through PT Pertagas Niaga, the affiliate of Pertamina Gas Subholding, which currently supplies 20,000 m3 natural gas (CNG) in Bali per month and the volume is predicted to accelerate to 850,000 m3 per month in line with the high interest of consumers and infrastructure readiness.

Through PT Gagas Energi Indonesia, PGN Group distributes CNG on the island of Bali for several customers engaged in the hotel sector, estimated at 3,000 m3 per month.

For the tourism service industry, such as hotels, restaurants and cafes in Bali, Pertagas Niaga is optimistic that it can flow natural gas, both CNG and liquefied natural gas (LNG), amounting to 12,000 MMBTU per month supplied from East Java and East Kalimantan gas.

This effort will prove how natural gas is very supportive of the development of a sustainable transportation and tourism sector.