ESDM Ministry Highlights Importance of Natural Gas as Transition Energy



Mahinda Arkyasa

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  • 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.