STATED-OWNED GAS COMPANY EXPANDS NATUAL GAS INFRASTRUCTURE

In order to support the acceleration of the conversion of oil fuel (BBM) to gas fuel (BBG) in the transportation sector, the state-owned gas company, PT PGN (Persero) Tbk (PGN), expand the natural gas infrastructure. This is done by PGN to support government efforts to reduce subsidies in the transportation sector that increasingly burdens the government budget. This was stated by PGN spokesman, Irwasn Andri Atmanto, in Bandung.

According to him, since President Susilo Bambang Yudhoyono mandated PGN to be a locomotive of the program of conversion to BBG in 2012, PGN continued to build gas filling facilities through SPBGs (gas filling stations) and Mobile Refueling Unit (MRU). Currently, PGN has been serving 14 SPBGs, operating 1 SPBG in Pondok Ungu, Bekasi and 3 MRU in Jakarta. Investment to build SPBGs is not cheap, because to build the dispenser alone (excluding land) requires an investment of IDR 20 billion to IDR 30 billion. Therefore, one alternative is to use a mini SPBG, shich can move from one area to another. This SPBG is operated in a location where permanent SPBG will be built.

“As a state-owned gas company that has built infrastructure and distributed natural gas for more than 49 years, the company is committed and consistent with the conversion to natural gas. This year, we will build 16 SPBGs and MRU in various regions in Indonesia. Although there are not many BBG consumers, PGN dares to take risk by building the infrastructure to make the fuel conversion program successful, “he said.

PGN efforts to reduce fuel subsidies by expanding the development of SPBGs and MRU should be supported by the increase in the number of vehicles consuming BBG. Therefore, the participation and support of all parties, both automotive business, government as policy markers, and the public as consumers to start consuming BBG, is absolutely necessary. “The synergy that involves all stakeholders is the key to the realization of the conversion to natural gas. PGN and the government have the same commitment to reduce dependence on BBM through BBG consumption more optimally, “he explained while stating that is pure infrastructure business.

In the same occasion, Executive Director of Energy Watch, Mamit Setiawan, that energy conversion to BBG will be successful if there is a synergy among the Ministry of Energy and Mineral Resources, the Ministry of Industry, authorized car dealers (ATPM), and PGN. Those parties shall perform their respective functions so that the three major aspects that become a prerequisite for the realization of the conversion to BBG, namely gas supply, infrastructure in the from SPBGs/MRU, and market access, can be created. The Ministry of Energy and Mineral Resources must ensure that gas supply is available, and PGN is preparing the infrastructures in the form of SPBGs. Meanwhile, to increase the population of BBG consumers, the role of the Ministry of industry and authorized car dealers is very crucial and strategic.

The Ministry of Industry should make a policy that forces the automotive industry to prepare the infrastructure by installing converters to prepare the infrastructure by installing converters. The authorized car dealer are required to produce dual fuel cars and to set up workshops that provide converters according to the standard for authorized cars dealers. “The synergy that involves all parties will be the key to the success of the conversion to BBG. If the synergy is realized, it will encourage businesses to be increasingly interested in engaging in SPBG busness, so that the number of SPBGs will increase faster. With these synergies, it is expected that the fuel conversion program will run smoothly, “he said. (E) 

Business News -  August 29, 2014