Govt to build 110 gas stations in 2012
Saturday, January 14 2012 - 02:04 AM WIB
The government has announced an ambitious program to build 110 gas stations (SPBGs) in Java and Bali this year to support the government?s program to encourage private cars to use natural gas, senior official at the Energy and Mineral Resources Ministry said.
Director General of Oil and Gas Evita H. Legowo said that 19 of the gas stations will be built in Jakarta. ?At present, there are 10 SPBGs in Jakarta. The number will increase to 19 in February,? she added.
The gas needed by the gas stations will reach at least 32 million standard cubic feet per day (MMSCFD) a year. However, the gas need will total only 24 MMSCFD this year because the program will start only in April, Evita said.
The oil to gas conversion program will begin in Jakarta in April then in Surabaya in June.
Private car owners are encouraged to start using gas fuel in line with the government?s plan to restrict the sales of subsidized fuels. Under the program, only motorcycles and public transport vehicles are allowed to buy subsidized fuels. Other cars have to use non-subsidized high octane fuel which is far more expensive. The government also plans to provide a free converter kit to public transport vehicles in Jakarta to enable them to use gas. A converter kit is priced at about Rp 15 million each (US$1,650).
?LGV (liquified gas for vehicle) and compressed natural gas (CNG) are alternative fuels. Owners of private cars may still buy non-subsidized fuel,? Evita said.
The government will provide subsidy of about Rp 1,000 per liter equivalent of Premium gasoline (lsp). The market price of CNG is about Rp 5,000 per lsp. The new subsidy plan will be proposed to the House of Representatives (DPR) for approval this week.
Editing by Roffie Kurniawan