CNG supply to return to normal Tuesday

Monday, June 12 2006 - 12:55 AM WIB

After days of disruption, supplies of compressed natural gas (CNG) to Jakarta will return to normal Tuesday, the head of the City Mineral and Mining Agency said Saturday.

Peni Susanti said the disruption was due to a leak in a transmission pipeline belonging to the state-owned gas company PT PGN, which was believed to have been ruptured by a ship?s anchor.

?Repair work is expected to be completed soon, so the supply will be normal by June 13,? Peni told The Jakarta Post on Saturday.

The continued supply of CNG is crucial to Jakarta?s much-hailed program to shift diesel-fueled public cars to CNG as part of its efforts to clean up the capital?s air.

Last week?s supply disruption disturbed the operation of busway. There are currently only eight gas stations selling CNG, out of the city?s 264 stations.

The administration plans to refit seven CNG stations owned by the state oil and gas company PT Pertamina to meet the demands of public transport operators.

In addition, the administration also urged all existing gas stations to sell CNG. New investors interested in opening gas stations must sign a contract stating their readiness to sell CNG or they will not be granted a license.

The mandatory usage of environmentally friendly fuels in public transport was first introduced in 1997 but has been hampered by the lack of gas stations selling CNG. Several taxi companies which initially shifted to using CNG have since returned to gasoline.

Last year, the administration signed a contract with PGN and Pertamina to ensure the supply of CNG to Jakarta. PGN will pipe gas from a field in the Java Sea owned by PT British Petroleum Indonesia, while the CNG supply for outside the Jakarta area will be from the Pertamina field gas in West Java.

The use of CNG was part of a 2005 bylaw on air pollution control. The bylaw also required vehicle exhaust emission tests.

The administration also asked the government to reduce the price of CNG from Rp 3,000 to Rp 2,200 per liter to encourage more people to switch to CNG. (*)

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