Indonesia Mandates Production Of Nat Gas-powered Vehicles

Posted by: : Paul EbelingPosted on: March 28, 2014 Indonesia Mandates Production Of Nat Gas-powered Vehicles

Indonesia Mandates Production Of Nat Gas-powered Vehicles

The Indonesian government will obligate car producers marketing their products in the country to partly manufacture vehicles that can be fueled by Nat Gas or Gasoline this year as an effort to sag the country’s reliance on Crude Oil, senior official saidThursday.

As a legal basis for the plan, the government of Indonesia, a fast growing car market and a country with abundant Nat Gas reserves, plans to issue a regulation this year, said Wiratmadja Puja, head of the government task force for the program to shift reliance from gasoline to Nat Gas.

The largest economy in Southeast Asia has declared the program for years as the country’s aging Crude Oil wells have pumped less due to a lack of fresh investment.

“There must be a breakthrough otherwise the program could not run,” he said.

“The regulation is going to be issued soon this year. The planned-ruling would require manufacturers to ensure that parts of their products can be fueled either by oil or gas,” said Mr. Puja.

Indonesia recorded an average of about 1-M car sales annually supported by accelerating economic growth and the growing middle class of about 238-M people.

The government has scrambled to bolster the Crude Oil-to-Nat Gas conversion by placing priority on allocating rising domestic Nat Gas output to comply with the increasing demand of energy in the country, Energy and Mining Minister Jero Wacik said.

State-owned Nat Gas distribution firm PT Perusahaan Gas Negara, or PGN, and state Oil and Gas firm PT Pertamina have set up 23 Nat Gas refueling facilities nationwide.

Indonesia is expected to gradually add the number of Nat Gas refueling stations by up to 100 units in a few years to come and 1,000 units in the longer term, according to the minister.

Rising energy demand has hiked the consumption of subsidized fuel in Indonesia, which resulted in increase in Crude Oil imports.

Indonesia has a proven Nat Gas reserve of 104-T cu ft and Crude Oil reserves of 3.7-B bbls, according to data from the country’s upstream regulator SKK Migas.

Stay tuned…

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Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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