Indonesia to Expand Network of Compressed Natural Gas Stations

Distributors will open 200 CNG stations over the next three years as part of the government's plan to move from oil to gas.

June 04, 2012

JAKARTA, Indonesia - The Indonesian government€™s plan to convert more of the country from oil to gas will get a boost as compressed natural gas (CNG) distributors open 200 gas stations over the next three years, the Jakarta Post reports.

The association of CNG distributors (APCNG) members will shell out around $315 million to start the 200 stations. "This will help the country save 90 million liters of fuel per month," said Danny Praditya, APCNG chairman.

Over the past six years, members have invested a trillion rupiah to set up 24 CNG stations, with 250 tube trailers to move CNG to the stations. Praditya is calling on the government to come up with firm plans to increase the use of CNG for cars.

"We need to have clear game rules to develop gas fuel infrastructure in Indonesia. We need to know where we are going and what we have to achieve to save energy in the future," he said.

Evita Herawati Legowo, director general for oil and gas for the Energy and Mineral Resources Ministry, said the government was receptive to APCNG ideas. "The government is still discussing this issue and we are trying our best to find solutions that will not disadvantage businesspeople," she said.

Earlier this year, President Susilo Bambang Yudhoyono unveiled the government€™s plan to reduce energy consumption and subsidized fuels, including a ban on government cars buying subsidized fuels, which started on Friday.

In the United States, CNG vehicles have been slower to catch on with the general public, although some Honda dealers will be installing compressed natural gas fueling stations in an effort to boost sales of those cars.

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