Pertamina units, Indominco to develop LNG-for-transportation project

Three subsidiaries of state oil and gas firm PT Pertamina (Persero) -- PT Pertamina Gas, PT Nusantara Regas, and PT Badak NGL -- are in cooperation with miner PT Indominco Mandiri to carry out the pilot project on use of LNG as fuel for transportation in the mining sector.

The first shipment of LNG for the pilot project took place on December 6, in Bontang in a ceremony attended also by Director General of Oil and Gas at the Energy and Mineral Resources Ministry Edy Hermantoro, according to a media statement from Pertamina released on December 8.

Under the pilot project agreement, the LNG will be used for mining operation vehicles operating in Indominco's coal mining in Kalimantan until the end of 2014.

In the first stage, the LNG will be used in the Volvo hauling truck FH 16 550 HP which has been equipped with a converter kit. Soon afterwards, it will also be used on inpit dump trucks as well as tug boats.

Starting 2015, Pertamina will be preparing for a full-scale commercial project, where the LNG requirement for Indominco is estimated to reach 160,000 m3 a year.

Pertamina is projected that the use of LNG in the transportation sector would reach 0.4 million tons a year by 2015.

Editing by Dadan Wijaksana