COMPRESSED NATURAL GAS (CNG) UTILIZATION POLICY TO IMPROVE URBAN AIR QUALITY by EDI WIBOWO and YUSEP K. CARYANA

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1 COMPRESSED NATURAL GAS (CNG) UTILIZATION POLICY TO IMPROVE URBAN AIR QUALITY by EDI WIBOWO and YUSEP K. CARYANA Research and Development Centre for Oil and Gas Technology LEMIGAS Jakarta 12230, Indonesia. Phone/Fax.: @lemigas.esdm.go.id, The 4th Asian Petroleum Technology Symposium January 18-20, 2006, SOFITEL ROYAL ANGKOR HOTEL, Siem Reap, Cambodia Host and Organizer: Japan Petroleum Energy Center 1

2 Outline Introduction. Development of CNG Utilization Natural Gas Supply and Distribution CNG Standard Quality Air Quality and Vehicle Emission in Jakarta Policy to develop CNG Vehicles in Indonesia 2

3 INTRODUCTION CNG as alternative and environmental friendly fuel for motor vehicles has been used in Indonesia since The number of CNG vehicles from 1987 to 2000 has increased from 300 units to 6630 units, however in 2004, the number of CNG Vehicles have decreased toward to 1500 units and 1 unit bus (Pertamina( Pertamina,, 2004). Limited numbers of CNG filling station, high price of conversion kit, high investment needed for building CNG filling stations, and lack of participations from private companies and the willingness of the government to support this program are some obstacles that cause this problem. Since the middle of 2005, the government of Indonesia has regulation to develop the use of alternative fuel such as coal, natural gas, green fuel to reduce Indonesia s demand of refined petroleum product. As we knew that since 2002, this country was a net importer of petroleum fuel products. 3

4 INTRODUCTION For the natural gas fuel, the total national gas reserves in 2004 was around 134,015.5 BSCF, with production of gas totalled was around 8,642 MMSCFD of which 58.4% was exported and around 41.6% was used as domestic fuel. For that reason the policy relate to the utilization of CNG as alternative and environmental friendly fuel shall be fully developed and implemented to support diversification of energy and blue skies program in Indonesia especially in urban city such as Jakarta. 4

5 METHOD OF EXPERIMENTAL The Method of Experimental is a Description Research, Data and information is result from the related institution that concern to this topics such as: Directorate General of Oil and Gas, PT. Pertamina (Persero) PT. Perusahaan Gas Negara (Persero( Persero) ) (one of gas transmission and distribution enterprise company) Research and Development Centre for Oil and Gas Technology Lemigas,, and the other. 5

6 RESULT AND DISCUSSION The Development of CNG Utilization Number of CNG Vehicles Year

7 The Development of CNG Utilization The decrease number of CNG motor vehicles may due to some factor such as: Price of conversion kit is expensive (In Indonesia currency is about 8 to 10 million rupiahs). The economical of CNG market price At the present, the price is Rp 1400,- per liter equivalent gasoline, So gas producers may have financial loss due to two main problems, those are CNG economic price and high operation cost of CNG filling station. Limited numbers of CNG filling station Consequently, a long queue was most common encounter at refueling station area. 7

8 Natural Gas Supply and Distribution In Indonesia only a limited area that have natural gas supply and distribution by pipeline. The natural gas distribution networks there are in Jakarta, Surabaya (East Java), Batam Island, Medan (North Sumatra) and Palembang (South Sumatra). The natural gas that be used in Jakarta include for CNG has been supplying from two main sources, that are Pertamina s West Java gas fields and the off shore BP North Java gas fields. 8

9 Natural Gas Supply and Distribution Under Construction From South Sumatera gas fields. Cengkareng off shore BP North Java gas fields. Pluit Ancol LAUT JAWA Daan Mogot Pulo Mas Bitung Bekasi Pulo Gadung Jatinegara Lemah Abang Pertamina s West Java Tebet gas fields Serpong Cibitung Pondok Gede Pipa PERTAMINA Toll Jagorawi Tegal Gede Residential Area Commersial & Industry Existing gas pipeline Planning of Gas Pipeline Existing Regulator Stations Planning of Regulator Stations Cimanggis Gas Pipeline Distribution Map of DKI Jakarta 9

10 Natural Gas Supply and Distribution 10

11 CNG Standard Quality CNG is the natural gas that has been purified and compressed at the elevated pressure up to 200 bars. Generally, it contains two major components i.e. methane (CH4) and ethane (C2H8). To provide guarantee that the quality of natural gas for CNG motor vehicles is safe for infrastructure and installation equipment at the filling station and motor vehicles, it needed the standard or specification of this fuel. 11

12 CNG Standard Quality Specification of CNG for Vehicles in Indonesia Parameter C 1 + C 2 C 3 C 4 C 5 N 2 H 2 S Hg (Mercury) O 2 H 2 O CO 2 Relative density at 28 C Calorific Value at 15 C, 1 atm Unit %Vol. %Vol. %Vol. %Vol. %Vol. ppm Vol. ppb Vol %Vol. %Vol. %Vol. Kj/ Kg Min. 62, , Limit - 8,0 4,0 1,0 2,0 14,0 9,0 0,2 0,035 5,0 0,89 - Max. Source : The decree of Oil and Gas Director General Number 10K/34/DDJM/1993. dated February 1,

13 CNG Standard Quality Typical Characteristics of CNG from one of filling station in DKI No. Composition Parameter Unit Value 1 Nitrogen % Mole Carbon dioxide % Mole Methane % Mole Ethane % Mole Propane % Mole i-butane % Mole n- Butane % Mole i-pentane % Mole n-pentane % Mole Hexane % Mole Heptane % Mole Octane % Mole Nonane % Mole Decane % Mole Sulfur Content 15 Hydrogen Sulfide ppm Mercaptane ppm Carbonyl Sulfide ppm Metal Content 18 Hg ppb nil 19 Fe ppm Moisture 20 Water Content Lb/MMSCF Physical Characteristic 21 Relative Density Gross Heating Value (GHV) BTU/CF Net Heating Value (NHV) BTU/CF

14 Air Quality and Vehicle Emission in Jakarta Based on study from ADB, in 2002 with number of vehicles in Jakarta was around 4.8 million, they were significant contributors (greater than 70%) of PM10 and the nitrogen oxides, and about 20% of the sulphur dioxide emission in Jakarta. 14

15 Air Quality and Vehicle Emission in Jakarta Some factors that cause of height mount contamination of gas emission throw away motor vehicle were: Technology of motor vehicles that be used, (such as conventional euro diesel, euro 2 diesel, reformulated gasoline or CNG). Not yet been obliged the periodic emission test of vehicles. Culture of owner or driver of motor vehicle to conduct inspection and maintenance of motor vehicle Fuel quality availability as requirement environment standard. Limited of usage alternative fuel such as CNG, LPG, Bio diesel etc. 15

16 Air Quality and Vehicle Emission in Jakarta To improve air quality in urban city such as Jakarta, some options to use cleaner fuel may be selected as fuel for motor vehicles, with target of air pollutant is: No. Fuel Target Air Polutant(s) Tech Requirements 1. CNG PM10 Conversion kit or full dedicated 2. Reformulated Gasoline 3. Ultra-low Sulphur Diesel Carbon monoxide Volatile Organic Compounds Nitrogen Oxides PM10 Nitrogen Oxides Catalytic Converters Particle traps 16

17 Policy to Develop CNG Vehicles in Indonesia The policy to improve air quality in urban area in Indonesia has been begun since the blue skies program was launched in The objectives of the program are as follows: To provide a mechanism for effective and efficient air pollution management. To manage air pollution. To obtain better ambient air quality for human health and other organism, and To improve human behavior from an environmental perspective. 17

18 Policy to Develop CNG Vehicles in Indonesia The scope of the blue skies program in transportation sector are: BLUE SKIES PROGRAM IN TRANSPORTATION SECTOR Energy Diversification Energy Diversification CNG, LPG, Ethanol, Fuel Cell, etc. Cleaner Fuels Unleaded Gasoline, Low/ Ultra Low Diesel Air Pollution Prevention Equipment Catalytic converter Public Involvement Gas Exhaust Emission Reduction at Certified Workshop Government Role Ambient Air Quality Monitoring and Standard Gas Exhaust Emission Inspection Fuel Quality Monitoring Program 18

19 Policy to Develop CNG Vehicles in Indonesia Learn from experiences before relate to CNG program, for succeeding this program to improve air quality in the future, the following policy conditions shall and will be applied: The implementing agency shall be conducted by local government and Gas Company,, with making policy to stimulate the use of CNG as fuel for vehicles especially for public transport and prepare its infrastructure. The price of CNG shall have a sufficient margin, both for the CNG G Filling Station Investor and the CNG vehicle owner. Effective safety regulations and standard shall be conducted both h for vehicles operations and maintenance and for fuel quality. Reliable operation of CNG filling station shall be guarantee. All person that involve in this program shall be proper trained and certificate. There is a coordinating committee for implementing, evaluating and a audit this program that comprise of both central and local (province) government agencies and related institutions. 19

20 Policy to Develop CNG Vehicles in Indonesia Some regulations have been launched to support the program to improve air quality in urban city that relate to CNG vehicles operations are set out as follow: Law number 23/ 1997 regarding Environmental Management. Law number 22/ 1999 regarding Local Government. Law number 22/ 2001 regarding Oil and Gas. The Government Regulation Number 41/1999 regarding Air Pollution Prevention. The Government Regulation Number 36/2004 regarding Oil and Gas Downstream Activity. The Decree of the Minister of Communication Number KM 64/1993 regarding Technical Requirement of CNG Utilization on Motor Vehicle; Letter of Statement of Director General of Oil and Gas No. 10K/34/DDJM/1993, dated February , Natural Gas Specification for Motor Vehicles. Letter of Statement of Director General for Land Transportation No. 852/AJ.302/DRJD/2004 Technical Requirement of CNG Utilization on Motor Vehicles. The Decree of the Minister of Environment Number 35/MENLH/10/1993 regarding Vehicle s s Exhaust Gas Emission Standard. The Decree of the Minister of Environment Number 141/2003 regarding Vehicle s s Exhaust Gas Emission Standard for New Type of Vehicles and Current rent Production Vehicles. The Decree of the Governor of DKI Jakarta Number 551/2001 regarding Ambient Air Quality Standard. The Decree of the Governor of DKI Jakarta Number 2/2005 regarding g Air Pollution Prevention. 20

21 CONCLUSION With the policy from government to reduce subsidy of oil price, and there is the significant different price of CNG and Oil will make interesting the investor and owner of vehicles to convert the oil fuel supply system of their vehicles to CNG fuel supply system. To improve air quality in urban city, one of the alternative is developing CNG motor vehicles that need to be supported by the willingness from central and local government. The supporting can be done by making policy that can stimulate the use of CNG as fuel for vehicles especially for public transport and prepare its infrastructure and continually to reduce the subsidy to oil price to make interesting in economical of CNG.. Parallel with this policy, also be prepared to make role for the public involvement and government in order to reduce air pollution. With the total national gas reserves relatively huge, the natural gas is expected as main alternative fuel to substitute oil as the source of energy in Indonesia. This include fuel for motor vehicles to improve air quality in urban city. 21

22 THANK YOU FOR YOUR ATTENTION 22

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