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COMPRESSED NATURAL GAS (CNG) UTILIZATION POLICY COMPRESSED NATURAL GAS (CNG) UTILIZATION POLICY

TO IMPROVE URBAN AIR QUALITY TO IMPROVE URBAN AIR QUALITY

by by

EDI WIBOWO and YUSEP K. CARYANA EDI WIBOWO and YUSEP K. CARYANA

Research and Development Centre for Oil and Gas Technology

Research and Development Centre for Oil and Gas Technology ““LEMIGASLEMIGAS” Jakarta 12230, Indonesia. Phone/Fax.: 62

Jakarta 12230, Indonesia. Phone/Fax.: 62--2121--73982767398276

E-E-mail: mail: ediw@lemigas.esdm.go.idediw@lemigas.esdm.go.id,, yusepk@lemigas.esdm.go.idyusepk@lemigas.esdm.go.id, , ed_bowo@plasa.comed_bowo@plasa.com

The 4th Asian Petroleum Technology Symposium The 4th Asian Petroleum Technology Symposium January 18

January 18--20, 2006, 20, 2006, SOFITEL ROYAL ANGKOR HOTEL,SOFITEL ROYAL ANGKOR HOTEL, SiemSiem Reap, CambodiaReap, Cambodia

Host and Organizer: Japan Petroleum Energy Center Host and Organizer: Japan Petroleum Energy Center

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Outline Outline

„„

Introduction. Introduction.

„„

Development of CNG Utilization Development of CNG Utilization

„„

Natural Gas Supply and Distribution Natural Gas Supply and Distribution

„„

CNG Standard Quality CNG Standard Quality

„„

Air Quality and Vehicle Emission in Jakarta Air Quality and Vehicle Emission in Jakarta

„„

Policy to develop CNG Vehicles in Indonesia Policy to develop CNG Vehicles in Indonesia

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INTRODUCTION INTRODUCTION

„„ CNG as alternative and environmental friendlyCNG as alternative and environmental friendly fuel for fuel for motor vehicles has been used in Indonesia since 1987.

motor vehicles has been used in Indonesia since 1987.

„„ The number of CNG vehicles from 1987 to 2000 has The number of CNG vehicles from 1987 to 2000 has increased from 300 units to 6630 units, however in 2004, increased from 300 units to 6630 units, however in 2004, the number of CNG Vehicles have decreased toward to the number of CNG Vehicles have decreased toward to

1500 units and 1 unit bus (

1500 units and 1 unit bus (PertaminaPertamina, 2004)., 2004).

„„ Limited numbers of CNG filling station, high price of Limited numbers of CNG filling station, high price of conversion kit, high investment needed for building CNG conversion kit, high investment needed for building CNG filling stations, and lack of participations from private filling stations, and lack of participations from private companies and the willingness of the government to companies and the willingness of the government to support this program are some obstacles that cause this support this program are some obstacles that cause this

problem.

problem.

„„ Since the middle of 2005, the government of Indonesia Since the middle of 2005, the government of Indonesia has regulation to develop the use of alternative fuel such has regulation to develop the use of alternative fuel such

as coal, natural gas, green fuel to reduce Indonesia as coal, natural gas, green fuel to reduce Indonesia’’s s

demand of refined petroleum product. As we knew that demand of refined petroleum product. As we knew that

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4

INTRODUCTION INTRODUCTION

„„

For the natural gas fuel, the total national gas For the natural gas fuel, the total national gas reserves in 2004 was around 134,015.5 BSCF, reserves in 2004 was around 134,015.5 BSCF,

with production of gas

with production of gas totalled totalled was around was around 8,642 MMSCFD of which 58.4% was exported 8,642 MMSCFD of which 58.4% was exported

and around 41.6% was used as domestic fuel.

and around 41.6% was used as domestic fuel.

„„

For that reason the policy relate to the utilization For that reason the policy relate to the utilization of CNG as alternative and environmental friendly of CNG as alternative and environmental friendly

fuel shall be fully developed and implemented to fuel shall be fully developed and implemented to support diversification of energy and blue skies support diversification of energy and blue skies program in Indonesia especially in urban city program in Indonesia especially in urban city

such as Jakarta.

such as Jakarta.

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METHOD OF EXPERIMENTAL METHOD OF EXPERIMENTAL

„„

The Method of Experimental is a Description The Method of Experimental is a Description Research,

Research,

„„

Data and information is result from the related Data and information is result from the related institution that concern to this topics such as:

institution that concern to this topics such as:

„„ Directorate General of Oil and Gas, Directorate General of Oil and Gas,

„„ PT. PertaminaPT. Pertamina (Persero(Persero))

„„ PT. PT. PerusahaanPerusahaan Gas Negara (Gas Negara (PerseroPersero) (one of gas ) (one of gas transmission and distribution enterprise company) transmission and distribution enterprise company)

„„ Research and Development Centre for Oil and Gas Research and Development Centre for Oil and Gas Technology

Technology ““LemigasLemigas””, and the other., and the other.

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6

RESULT AND DISCUSSION RESULT AND DISCUSSION

„„

The Development of CNG Utilization The Development of CNG Utilization

0 1000 2000 3000 4000 5000 6000 7000

Number of CNG Vehicles

1987 1988

1989 1990

1991 1992

1993 1994

1995 1996

1997 1998

1999 2000

2001 2002

2003 2004 Year

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The Development of CNG Utilization The Development of CNG Utilization

The decrease number of CNG motor vehicles The decrease number of CNG motor vehicles

may due to some factor such as:

may due to some factor such as:

„„

Price of conversion kit is expensive Price of conversion kit is expensive

((In Indonesia currency is about 8 to 10 million rupiahsIn Indonesia currency is about 8 to 10 million rupiahs).).

„„

The economical of CNG market price The economical of CNG market price

At the present, the price is

At the present, the price is RpRp 1400,-1400,- per liter equivalent per liter equivalent gasoline, So gas producers may have financial loss due to gasoline, So gas producers may have financial loss due to two main problems, those are CNG economic price and high two main problems, those are CNG economic price and high operation cost of CNG filling station.

operation cost of CNG filling station.

„„

Limited numbers of CNG filling station Limited numbers of CNG filling station

Consequently, a long queue was most common encounter at Consequently, a long queue was most common encounter at refueling station area.

refueling station area.

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8

Natural Gas Supply and Distribution Natural Gas Supply and Distribution

„„ In Indonesia only a limited area that have natural In Indonesia only a limited area that have natural gas supply and distribution by pipeline.

gas supply and distribution by pipeline.

„„ The natural gas distribution networks there are in The natural gas distribution networks there are in Jakarta, Surabaya (East Java),

Jakarta, Surabaya (East Java), BatamBatam Island, Island, Medan

Medan (North Sumatra) and Palembang(North Sumatra) and Palembang (South (South Sumatra).

Sumatra).

„„ The natural gas that be used in Jakarta include The natural gas that be used in Jakarta include for CNG has been supplying from two main for CNG has been supplying from two main sources, that are

sources, that are PertaminaPertamina’’ss West Java gas fields West Java gas fields and the off shore BP North Java gas fields.

and the off shore BP North Java gas fields.

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Natural Gas Supply and Distribution Natural Gas Supply and Distribution

Ancol

Pluit

Cengkareng

Daan Mogot Bitung

Serpong

Tebet

Jatinegara

Cimanggis

Pondok Gede Pulo Gadung

Pulo Mas

Bekasi

Cibitung Tegal Gede

Lemah Abang

Toll Jagorawi

PipaPERTAM INA

LAUT JAWA

Residential Area

Commersial & Industry Existing gas pipeline Planning of Gas Pipeline Existing Regulator Stations

Pertamina Pertamina’’ss West Java West Java gas fields gas fields off shore BP

off shore BP North Java North Java gas fields.

gas fields.

Under Under Construction Construction From South From South Sumatera Sumatera gas gas

fields.

fields.

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10

Natural Gas Supply and Distribution

Natural Gas Supply and Distribution

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CNG Standard Quality CNG Standard Quality

„„ CNG is the natural gas that has been purified and CNG is the natural gas that has been purified and compressed at the elevated pressure up to 200 compressed at the elevated pressure up to 200 bars.

bars.

„„ Generally, it contains two major components i.e. Generally, it contains two major components i.e.

methane (CH4) and ethane (C2H8).

methane (CH4) and ethane (C2H8).

„„ To provide guarantee that the quality of natural To provide guarantee that the quality of natural gas for CNG motor vehicles is safe for gas for CNG motor vehicles is safe for infrastructure and installation equipment at the infrastructure and installation equipment at the filling station and motor vehicles, it needed the filling station and motor vehicles, it needed the standard or specification of this fuel.

standard or specification of this fuel.

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12

CNG Standard Quality CNG Standard Quality

Specification of CNG for Vehicles in Indonesia

Limit

Parameter Unit

Min. Max.

C1 + C2 C3

C4 C5 N2 H2S

Hg (Mercury) O2

H2O CO2

Relative density at 28 °C

Calorific Value at 15°C, 1 atm

%Vol.

%Vol.

%Vol.

%Vol.

%Vol.

ppm Vol.

ppb Vol

%Vol.

%Vol.

%Vol.

Kj/ Kg

62,0 - - - - - - - - - 0,56 44.000

- 8,0 4,0 1,0 2,0 14,0 9,0 0,2 0,035 5,0 0,89 -

Source : The decree of Oil and Gas Director General Number 10K/34/DDJM/1993. dated February 1,1993.

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CNG Standard Quality CNG Standard Quality

Typical Characteristics of CNG from one of filling station in DKI

No. Parameter

Composition Unit Value

1 Nitrogen % Mole 0.2389

2 Carbon dioxide % Mole 4.7818

3 Methane % Mole 84.7297

4 Ethane % Mole 3.6687

5 Propane % Mole 3.9832

6 i-Butane % Mole 0.8198

7 n- Butane % Mole 0.9451

8 i-Pentane % Mole 0.3364

9 n-Pentane % Mole 0.2280

10 Hexane % Mole 0.1656

11 Heptane % Mole 0.0681

12 Octane % Mole 0.0279

13 Nonane % Mole 0.0065

14 Decane % Mole 0.0004

Sulfur Content

15 Hydrogen Sulfide ppm 5.9856

16 Mercaptane ppm 2.3475

17 Carbonyl Sulfide ppm 0.4521

Metal Content

18 Hg ppb nil

19 Fe ppm 0.0086

Moisture

20 Water Content Lb/MMSCF 22.00

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14

Air Quality

Air Quality and and Vehicle Emission in Jakarta Vehicle Emission in Jakarta Based on study from ADB, in 2002 with Based on study from ADB, in 2002 with

number of vehicles in Jakarta was number of vehicles in Jakarta was

around 4.8 million, they were around 4.8 million, they were

significant contributors (greater than significant contributors (greater than 70%) of PM10 and the nitrogen oxides, 70%) of PM10 and the nitrogen oxides,

and about 20% of the

and about 20% of the sulphur sulphur dioxide dioxide emission in Jakarta.

emission in Jakarta.

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Air Quality

Air Quality and and Vehicle Emission in Jakarta Vehicle Emission in Jakarta

Some factors that cause of height mount Some factors that cause of height mount

contamination of gas emission throw away motor contamination of gas emission throw away motor

vehicle were:

vehicle were:

„„ Technology of motor vehicles that be used, Technology of motor vehicles that be used,

(such as conventional euro diesel, euro 2 diesel, (such as conventional euro diesel, euro 2 diesel, reformulated gasoline or CNG).

reformulated gasoline or CNG).

„„ Not yet been obliged the periodic emission test of Not yet been obliged the periodic emission test of vehicles.

vehicles.

„„ Culture of owner or driver of motor vehicle to conduct Culture of owner or driver of motor vehicle to conduct inspection and maintenance of motor vehicle

inspection and maintenance of motor vehicle

„„ Fuel quality availability as requirement environment Fuel quality availability as requirement environment standard.

standard.

„„ Limited of usage alternative fuel such as CNG, LPG, Bio Limited of usage alternative fuel such as CNG, LPG, Bio diesel etc.

diesel etc.

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Air Quality

Air Quality and and Vehicle Emission in Jakarta Vehicle Emission in Jakarta

To improve air quality in urban city such as Jakarta, To improve air quality in urban city such as Jakarta, some options to use cleaner fuel may be selected some options to use cleaner fuel may be selected

as fuel for motor vehicles, with target of air as fuel for motor vehicles, with target of air

pollutant is:

pollutant is:

No. Fuel Target Air Polutant(s) Tech

Requirements

1. CNG PM10 Conversion kit or

full dedicated 2. Reformulated

Gasoline

• Carbon monoxide

• Volatile Organic Compounds

• Nitrogen Oxides

Catalytic Converters

3. Ultra-low Sulphur Diesel

• PM10

• Nitrogen Oxides Particle traps

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Policy to

Policy to Develop Develop CNG Vehicles CNG Vehicles in Indonesia

in Indonesia

The policy to improve air quality in urban area The policy to improve air quality in urban area in Indonesia has been begun since the blue in Indonesia has been begun since the blue skies program was launched in 1996. The skies program was launched in 1996. The

objectives of the program are as follows:

objectives of the program are as follows:

„„ To provide a mechanism for effective and efficient air To provide a mechanism for effective and efficient air pollution management.

pollution management.

„„ To manage air pollution.To manage air pollution.

„„ To obtain better ambient air quality for human health To obtain better ambient air quality for human health and other organism, and

and other organism, and

„„ To improve human behavior from an environmental To improve human behavior from an environmental perspective.

perspective.

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18

Policy to

Policy to Develop Develop CNG Vehicles CNG Vehicles in Indonesia

in Indonesia

The scope of the blue skies program in The scope of the blue skies program in

transportation sector are:

transportation sector are:

BLUE SKIES PROGRAM IN TRANSPORTATION SECTOR BLUE SKIES PROGRAM IN TRANSPORTATION SECTOR

Energy Diversification

Public Involvement

Government Role

Gas Exhaust Emission Reduction at Certified Workshop

• Ambient Air Quality Monitoring and Standard

• Gas Exhaust Emission Inspection

• Fuel Quality Monitoring Program Energy Diversification

CNG, LPG, Ethanol, Fuel Cell, etc.

Cleaner Fuels

Unleaded Gasoline, Low/ Ultra Low Diesel Air Pollution Prevention Equipment

Catalytic converter

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Policy to

Policy to Develop Develop CNG Vehicles CNG Vehicles in Indonesia

in Indonesia

Learn from experiences before relate to CNG program, for Learn from experiences before relate to CNG program, for succeeding this program to improve air quality in the future, succeeding this program to improve air quality in the future, the following policy conditions shall and will be applied:

the following policy conditions shall and will be applied:

„„ The implementing agency shall be conducted by The implementing agency shall be conducted by local governmentlocal government and and Gas CompanyGas Company, with making policy to stimulate the use of CNG as , with making policy to stimulate the use of CNG as

fuel for vehicles especially for public transport and prepare it fuel for vehicles especially for public transport and prepare its s

infrastructure.

infrastructure.

„

„ The price of CNG shall have a sufficient margin, both for the CNThe price of CNG shall have a sufficient margin, both for the CNG Filling G Filling Station Investor and the CNG vehicle owner.

Station Investor and the CNG vehicle owner.

„

„ Effective safety regulations and standard shall be conducted both for Effective safety regulations and standard shall be conducted both for vehicles operations and maintenance and for fuel quality.

vehicles operations and maintenance and for fuel quality.

„

„ Reliable operation of CNG filling station shall be guarantee.Reliable operation of CNG filling station shall be guarantee.

„„ All person that involve in this program shall be proper trained All person that involve in this program shall be proper trained and and certificate.

certificate.

„„ There is a coordinating committee for implementing, evaluating aThere is a coordinating committee for implementing, evaluating and nd

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Policy to

Policy to Develop Develop CNG Vehicles in Indonesia CNG Vehicles in Indonesia

Some regulations have been launched to support the program to im

Some regulations have been launched to support the program to improve air quality prove air quality in urban city that relate to CNG vehicles operations are set out

in urban city that relate to CNG vehicles operations are set out as follow:as follow:

„

„ Law number 23/ 1997 regarding Environmental Management.Law number 23/ 1997 regarding Environmental Management.

„„ Law number 22/ 1999 regarding Local Government.Law number 22/ 1999 regarding Local Government.

„

„ Law number 22/ 2001 regarding Oil and Gas.Law number 22/ 2001 regarding Oil and Gas.

„„ The Government Regulation Number 41/1999 regarding Air PollutionThe Government Regulation Number 41/1999 regarding Air Pollution Prevention.Prevention.

„„ The Government Regulation Number 36/2004 regarding Oil and Gas The Government Regulation Number 36/2004 regarding Oil and Gas Downstream Activity.

Downstream Activity.

„

„ The Decree of the Minister of Communication Number KM 64/1993 regarding The Decree of the Minister of Communication Number KM 64/1993 regarding Technical Requirement of CNG Utilization on Motor Vehicle;

Technical Requirement of CNG Utilization on Motor Vehicle;

„„ Letter of Statement of Director General of Oil and Gas No. 10K/34/DDJM/1993, Letter of Statement of Director General of Oil and Gas No. 10K/34/DDJM/1993, dated February 1 1993, Natural Gas Specification for Motor Vehic

dated February 1 1993, Natural Gas Specification for Motor Vehicles.les.

„„ Letter of Statement of Director General for Land Transportation No. Letter of Statement of Director General for Land Transportation No.

852/AJ.302/DRJD/2004 Technical Requirement of CNG Utilization on

852/AJ.302/DRJD/2004 Technical Requirement of CNG Utilization on Motor Motor Vehicles.

Vehicles.

„

„ The Decree of the Minister of Environment Number 35/MENLH/10/1993 The Decree of the Minister of Environment Number 35/MENLH/10/1993 regarding Vehicle

regarding Vehicle’’s Exhaust Gas Emission Standard.s Exhaust Gas Emission Standard.

„„ The Decree of the Minister of Environment Number 141/2003 regarding The Decree of the Minister of Environment Number 141/2003 regarding Vehicle

Vehicle’’s Exhaust Gas Emission Standard for New Type of Vehicles and Curs Exhaust Gas Emission Standard for New Type of Vehicles and Current rent Production Vehicles.

Production Vehicles.

„„ The Decree of the Governor of DKI Jakarta Number 551/2001 regarding The Decree of the Governor of DKI Jakarta Number 551/2001 regarding Ambient Air Quality Standard.

Ambient Air Quality Standard.

„„ The Decree of the Governor of DKI Jakarta Number 2/2005 regarding Air The Decree of the Governor of DKI Jakarta Number 2/2005 regarding Air Pollution Prevention.

Pollution Prevention.

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CONCLUSION CONCLUSION

„„ With the policy from government to reduce subsidy of oil price, With the policy from government to reduce subsidy of oil price, and there is the significant different price of CNG and Oil will and there is the significant different price of CNG and Oil will make interesting the investor and owner of vehicles to convert make interesting the investor and owner of vehicles to convert the oil fuel supply system of their vehicles to CNG fuel supply the oil fuel supply system of their vehicles to CNG fuel supply

system.

system.

„

„ To improve air quality in urban city, one of the alternative is To improve air quality in urban city, one of the alternative is developing CNG motor vehicles that need to be supported by developing CNG motor vehicles that need to be supported by

the willingness from central and local government. The the willingness from central and local government. The

supporting can be done by making policy that can

supporting can be done by making policy that can stimulate stimulate the use of CNG as fuel for vehicles especially for public the use of CNG as fuel for vehicles especially for public

transport and prepare its infrastructure

transport and prepare its infrastructure and continually to and continually to reduce the subsidy to oil price to make interesting in reduce the subsidy to oil price to make interesting in

economical of CNG

economical of CNG. Parallel with this policy, also be prepared . Parallel with this policy, also be prepared to make role for the public involvement and government in to make role for the public involvement and government in

order to reduce air pollution.

order to reduce air pollution.

„„ With the total national gas reserves relatively huge, the With the total national gas reserves relatively huge, the natural gas is expected as main alternative fuel to substitute natural gas is expected as main alternative fuel to substitute oil as the source of energy in Indonesia. This include fuel for oil as the source of energy in Indonesia. This include fuel for

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THANK YOU THANK YOU

FOR FOR YOUR YOUR

ATTENTION

ATTENTION

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