Pertamina starts using LNG for truck fleet

State-owned oil and gas firm PT Pertamina has started using LNG for its fleet of fuel trucks in an initial drive at the company to gradually convert from using automotive diesel.

Pertamina Marketing and Commercial Director Hanung Budya said in a statement Monday that based on recent trials, using a combination of LNG (57 percent) and automotive diesel (43 percent) as fuel for its trucks resulted in efficiency above 14 percent if compared to using 100 percent automotive diesel.

?This is quite encouraging, and we?re committed to expand the program to our entire large fuel trucks,? he said, adding that if the fuel mix program is applied to its entire fleet of 2,100 fuel trucks, it would result in annual cost saving of Rp 280 billion per year as the company reduces the consumption of the more expensive automotive diesel.

Going forward, the company aims to use 100 percent LNG for its trucks.

Pertamina Director of Gas, Hari Karyuliarto said that that in the initial phase, the LNG supply for the program comes from PT Badak NGL in cooperation with company subsidiary PT Pertamina Gas and PT Nusantara Regas.

He said that the conversion to gas program should benefit Indonesia as it would help cut down the country?s automotive diesel import.

Pertamina has previously applied pilot gas conversion programs in the mining sector in cooperation with miners PT Indominco Mandiri and Berau Coal, in which the fuel dual system is applied for heavy equipment and trucks at the mines.

Pertamina said in the statement that LNG consumption in the transportation sector is projected to rise to 1.3 million tons per year by 2019, from the estimated 0.4 million tons for this year, that could reduce consumption of automotive diesel by about 3 million kilo liters.

Editing by Reiner Simanjuntak