2015-10-21: WRTG: NYMEX Light Sweet Crude: $45.89 (-1.37)
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2016-05-26: OPEC: Daily Basket Price: $45.43
Senin, 24 Oktober 2016



LPG Conversion and City Gas Have Similar Goals

The 3kg LPG Conversion and City Gas program currently being carried out by the government have similar goals, to reduce kerosene consumption and its associated subsidies.  

The household use of kerosene in 2008 reached 7,82 million KL.  “Compared with other subsidized products, kerosene is one of the biggest consumers of subsidy” explains the Director General of Oil and Gas, Evita Legowo in Palembang.  The Director General further explains that the government prioritize those two diversification programs.

Indonesia has a far higher amount of gas reserves in comparison with oil, meanwhile its number of usage in the household sector is still far lower than kerosene.  Household kerosene consumption is at 17,35% while gas is only 0,05%.

According to reserve data on January 1st 2008, proven oil reserves is at 3,747.50 MSTB, potential reserves at 4,471.72 MMSTB, with a total of 8,219.22 MMSTB.  Proven natural gas reserves is at 112.47 TSCF, potential reserves at 57.60 TSCF with a total of 170.07 TSCF.

According to the head of BPH Migas, kerosene subsidy in 2008 reached Rp. 48,2 Trillion, emphasizing the need of LPG and natural gas usage to reduce this burden.

Since the conversion program began in 2007, LPG demand has increased 9 fold.  The success of this conversion program have saved 50% of subsidies.  Several areas that are planned for this conversion program this year include NAD, North Sumatra, Riau, South Sumatra, Lampung, Jakarta, Banten, West Java, East Java, Yogyakarta, Bali, East Kalimantan, and South Sulawesi.

The government plans to develop city gas in several areas including NAD, South Sumatra, East Kalimantan, West Java, Central Java, East Java, and Papua.  Two areas which are currently in construction phase are Palembang and Surabaya.

The government will play a leading role in this conversion program to reach a set target of 30% gas percentage in the energy mix by 2025.