PGN, Pelni, ASDP sign agreements on use of LNG for ships

IDX-listed state owned gas distributor PT Perusahaan Gas Negara (Tbk) (PGN) signed on Thursday agreements with state owned shipping company PT Perusahaan Pelayaran Nasional Indonesia (PELNI) and state owned ferry operator PT ASDP Indonesia Ferry on the use of LNG for ships and ferries.

PGN said in the agreements were signed by PGN?s President Director Hendi Prio Santoso, PELNI?s President Director Elfien Goentoro, ASDP?s Director Danang S. Baskoro. Present at the ceremony was Minister of State Enterprises Rini Soemarno.

Following the agreements, the three firms will join hands in preparing infrastructures that will enable PELNI?s and ASDP?s armadas to use LNG rather than oil fuels, the type of fuel used by both firms use at present. It is expected that ?pioneer ships?, the ships used in remote islands, owned by the Directorate General of Sea Transportation will also use LNG for fuel in the future.

PELNI?s fleet consumes 33.4 million liters of oil fuels per month, while the monthly consumption of ASDP fleet and pioneer ships reach 3.5 million liters and 14.4 million liters respectively.

By using LNG, it is expected PELNI, ASDP and the Director General of Transportation will cut their fuel costs by 40 percent.

Editing by Johannes Simbolon