ESDM Ministry Highlights Importance of Natural Gas as Transition Energy

Translator

Mahinda Arkyasa

10 October 2021 13:54 WIB

TEMPO.CO, Jakarta - The government has set a policy to substitute fossil fuel with new and renewable energy and has made natural gas an important factor in future energy transition programs.

"The role of natural gas in the energy transition has become more important because it is easy to be transported and stored and the most important thing is the carbon emission factor," said the Director-General of Oil and Gas of the Ministry of Energy and Mineral resources Tutuka Ariadji in a statement as quoted by Antara on Sunday, October 10, 2021.

According to Tutuka, gas plays an important role as it has a good carbon emission factor in the Asia Pacific region, including Indonesia.

Tutuka asserted that Indonesia has been committed to reducing gas house emission by 29 percent in 2030 and up to 41 percent with the help of international communities including in the field of technology and finance.

The energy sector is committed to reduce greenhouse gas emissions by 314 million tons of carbon dioxide equivalent (CO2e) to 398 million tons CO2e in 2030 through the development of renewable energy, energy conversion, and the implementation of clean energy technology.

"Therefore, the role of gas as transition energy is very important," Tutuka said.

Ever since it was introduced back in 1965, the requirement of natural gas for households in Indonesia continues to increase.

Previously, natural gas is more prevalent for export. However, nowadays, more than 60 percent of natural gas production has been channeled to fulfill domestic needs.

Based on the National Energy Public Plan, natural gas is targeted to constitute 24 percent of the national energy composition in 2050.

"Indonesia's natural gas reserve is one of the factors that can decide the target," Tutuka explained.

In reference to the Energy and Mineral Resources Ministry data, the largest consumer of domestic natural gas is the industry sector with 28.22 percent, the electricity sector with 12.04 percent, and the fertilizer sector with 12.45 percent.

Meanwhile, 20.05 percent of the total production is being exported in the form of liquid natural gas and another 13.15 percent is being exported through pipelines. The total amount of natural gas consumption recorded in June 2021 reached 5,661.38 BBUTD.

In an effort to fulfill domestic needs, especially for the industrial sector and power plants, the government continues to improve infrastructure development and pipeline transmissions, including the Cirebon-Semarang pipeline that ties in with the West Natuna Transportation System (WNTS)-Pemping, and Sei Ruas Mangkei-Dumai pipeline.

In addition, the development of small-scale and virtual pipeline continues to be carried out to secure energy supply for regions with geographical difficulties, such as small islands located in the eastern part of Indonesia.

ANTARA



ESDM Ministry on Poor Gas Mileage Issue: 'Pertalite Fuel On Spec'

1 hari lalu

ESDM Ministry on Poor Gas Mileage Issue: 'Pertalite Fuel On Spec'

ESDM Ministry's oil and gas director general Tutuka Ariadji clarified issues that Pertalite fuel easily evaporates and runs out after the price hike.


Jokowi Issues Instruction to Use Electric Cars as Govt Officials' Vehicles

20 hari lalu

Jokowi Issues Instruction to Use Electric Cars as Govt Officials' Vehicles

The instruction is a manifestation of Jokowi's commitment to transition from fossil-based energy to green, renewable sources.


Use of Geothermal Energy can Boost People's Economy: Energy Ministry

21 hari lalu

Use of Geothermal Energy can Boost People's Economy: Energy Ministry

Geothermal energy utilization would not only provide low-emission electricity, but also generate additional revenues, improving people's economy


SOEs Ministry Member Calls for Alternative Uses for Energy Subsidy

41 hari lalu

SOEs Ministry Member Calls for Alternative Uses for Energy Subsidy

SOEs Ministry Assistant Deputy for Energy, Oil and Gas Industry Abdi Mustakim called for energy subsidy to be used in other productive sectors.


Coal Association Claims Coal Prices to Soar

43 hari lalu

Coal Association Claims Coal Prices to Soar

Aspebindo predicts prices of coal in the international market will remain high due to high demands meeting low supply.


Govt Carefully Calculating Fuel Price Adjustments, Luhut Pandjaitan Says

45 hari lalu

Govt Carefully Calculating Fuel Price Adjustments, Luhut Pandjaitan Says

the government is currently still calculating energy subsidies and compensation amidst talks about raising the prices of fuel.


Luhut: President Jokowi Will Announce Hike in Fuel Prices Next Week

47 hari lalu

Luhut: President Jokowi Will Announce Hike in Fuel Prices Next Week

President Joko "Jokowi" Widodo will announce an increase in the prices of subsidized fuel oil next week, Coordinating Minister Luhut stated today.


Inflation Suppressed by Energy Subsidy, Bank Indonesia Governor Says

49 hari lalu

Inflation Suppressed by Energy Subsidy, Bank Indonesia Governor Says

Global inflationary pressures on domestic inflation are able to be restrained as energy subsidies were allocated.


Govt Talks of Hike in Subsidized Fuel Prices

51 hari lalu

Govt Talks of Hike in Subsidized Fuel Prices

Deputy Finance Minister Suahasil Nazara said the government has not yet decided to increase the prices of subsidized fuel.


Observers Outline Electric Vehicle Challenges Including Dirty Energy

52 hari lalu

Observers Outline Electric Vehicle Challenges Including Dirty Energy

Observers outlined several challenges in implementing electric vehicle ecosystem in Indonesia.