PGN signs agreement on utilization of gas in ships

State-controlled gas distributor PT Perusahaan Gas Negara Tbk (PGN) signed on Wednesday a cooperation agreement with the Ministry of Transportation to promote the use of liquefied natural gas (LNG) rather than oil fuel in ships.

The agreement was signed by PGN?s President Director Hendi Prio Santoso and Director General of Sea Transportation Bobby R. Mamahit.

Under the agreement, both parties will cooperate in studying technology that will allow the national vessels to switch from oil fuels to LNG, PGN said in a statement.

At present, all vessels in Indonesia use oil as fuel.

?Natural gas is environmentally-friendly and more efficient energy. (If all vessels in Indonesia use gas as fuel), it will reduce the nation?s reliance on oil fuel imports, cut down the flight of our foreign exchange earnings overseas and help realize our energy independence,? Hendi said.

Editing by Johannes Simbolon