Fuel Conversion, Infrastructure to be Ready

Receiving terminal LNG
Sumber :

VIVAnews – Government will enforce fuel conversion from petroleum to gas for four-wheeled vehicles. This step is taken to lower the consumption of subsidized fuel so as not to exceed the 2012 State Budget quota. 

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PT Perusahaan Gas Negara Tbk (PGN), as state-owned gas company, stated that it will facilitate the development of infrastructure for the conversion. 

“We will help prepare the infrastructure. The gas price is regulated in Ministerial Regulation No.19/2010,” said PGN’s Director of Investment Development & Risk Management, M. Wahid Sutopo, in Jakarta, Monday, Jan 16. 

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Wahid also said that the company has callocated capital expenditure/capex of US$200 million or around Rp1,8 trillion this year. 

“We have prepared US$200 million worth of capital expenditure this year,” he said. 

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He admitted that the capital expenditure will be focused for infrastructure development as well as gas distribution.  

Terminal Development 

Wahid went on to say that the said infrastructure means the establishment of Liquid Natural Gas(LNG) Receiving Terminal or Floating Storage Receiving Unit (FSRU) in Belawan, North Sumatra and in West Java. 

“The capital expenditure for LNG is the most expensive. We are also focusing more on getting additional gas supply,” he said. 

Wahid said that at the moment, the company’s gas requirement is still quite big, for example, for the FSRU in Muara Karang.  A FSRU will also be built in Lampung. 

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