Govt to build SPBG in 7 cities next year
Friday, November 25 2011 - 03:41 AM WIB
Based on Energy and Mineral Resources Ministrial Decree No. 19/2010 concerning the use of gas-based fuel for transportation, the government has built gas refueling stations (SPBG) in Palembang, South Sumatra this year and plans to build more in seven cities next year which are Surabaya, Sidorarjo, Gresik, Jabodetabek, Bali, Medan and Cikampek.
The gas-based fuel for transportation, according to Director General of Oil and Gas at the Ministry Evita H. Legowo, can be made available in the form of compressed natural gas (CNG) or liquified gas vehicle.
The use of this fuel will be priority in regions rich in natural gas resources, those that have natural gas transmission/distribution network, and those that enjoy high growth in vehicle sales.
Under the decree, the holders of oil and gas production sharing contracts (PSC) must allocate 40% of their DMO portion for the fulfillment of gas-based fuel needs for transportation.
In addition, in the downstream sector, oil and gas business entities must set aside 25% of the traded natural gas for the fulfillment of gas-based fuel need for transportation. This requirement will be applied in phases, as follows:
1. The allocation of a minimum 10% of total gas being traded from 2011 to 2014
2. The allocation of a minimum 15% of total gas being traded from 2015 to 2019
3. The allocation of a minimum 20% of total gas being traded from 2020 to 2024
4. The allocation of a minimum 25% of total gas being traded from 2015 onward
The selling price of the gas fuel will be determined by the Energy Minister for every region, by calculating the volume of sales. The Minister will conduct regular review and evaluation and can adjust the price if needed. (romel)