Chamber of Commerce and Industry (Kadin): The Formation of Oil and Gas Holding Become Momentum to Implement Fuel into Industrial Gas

INDUSTRY.co.id - Jakarta, Chamber of Commerce and Industry (Kadin) Indonesia assesses the government is still focusing to apply fuel oil (BBM) one price compared industrial gas.

"As the government is still more focused on the use of gas fuel than industrial gas," said Achmad Widjaja as Chairman of the Standing Committee of Indonesian Chamber of Commerce and Industry (KADIN) Upstream Industries and Petrochemicals, to INDUSTRY.co.id in Jakarta, Thursday (4/1 / 2017).

He added that the government should not focus solely on supplying BBM one price across the country, but ignoring the provision of environmentally friendly fuels such as gas for communities and industries.

Furthermore, he explains, while the mahakam block has just been awarded a contract of work, so in the future the government must seriously see LNG become an industrial material for the future.

"Because in Indonesia the raw materials of energy that has been available and abundant in nature," explained the man who is often called AW.

According to him, the formation of holding BUMN Migas is the right momentum for the government to focus on implementing the conversion of fuel to gas for industry.

Moreover, he continued, the utilization of natural gas to meet domestic demand continues to rise since 2013. Rising demand for domestic gas and the decline are in the commitment of export gas discharge to cause the increase of gas utilization in the country.

"Since 2013-2015, domestic gas utilization growth of 9 percent," said AW.

Meanwhile, the Ministry of Industry projected gas demand for the industrial sector by 35 percent in 2018. The demand for gas will continue to increase as the projected growth of non-oil and gas manufacturing industry by 5.67 percent next year.

The industrial sector absorbs 30.88 of the nation's total energy demand. Of that amount, 70 percent is consumed by energy-savvy industries, such as fertilizers and petrochemicals, pulp and paper, textiles and textile products, cement, steel, ceramics, palm oil, and food and beverages.

In 2016 the energy needs of the industrial sector reach 420.35 million barrel oil equivalent (SBM). Of this amount, gas accounted for 142.07 million BOE or 33.79 percent of the total demand, while the need for coal amounted to 169.64 million BOE or 40.35 percent.

In MMBtu, this year, it is estimated that industrial gas demand is at 829,338.2 MMBtu and is projected to rise to 867,071 MMBtu by 2018.