Biogas Utilization Always Under Contract

Based on data from the Ministry of Energy and Mineral Resources (ESDM), gas utilization for fuel in the transportation sector has consistently fallen short of targets. In 2013, the volume of gas absorbed for transportation was 3.21 billion British thermal units per day (BBTUD), or only 71.3 percent of the contracted volume of 4.50 BBTUD. Gas absorption for transportation increased again in 2014 to 3.8 BBTUD, but only reached 43.6 percent of the 8.7 BBTUD contract. In 2015, gas absorption increased again to 6.06 BBTUD, meaning only 69.6 percent of the 8.7 BBTUD contract. Meanwhile, in 2016, gas consumption in the transportation sector decreased to 3.59 BBTUD, achieving only 42.2 percent of the 8.5 BBTUD contract.

Going forward, the government will mandate that Public Fuel Filling Station (SPBU) operators sell compressed natural gas (CNG). This regulation is currently being drafted by the Ministry of Energy and Mineral Resources. According to ESDM data, there are currently 68 CNG filling stations (SPBG). In comparison, in 2016, Iran had 2,350 SPBGs and Thailand had 470.

Previously, PT Pertamina (Persero) requested government subsidies for compressed natural gas (CNG). They argued that the current price of CNG sold by Pertamina is uneconomical and potentially unprofitable.