Kerosene to LPG Conversion Project :
The Story of 3kg LPG
February 7th 2017
New Delhi – India
R. Zulfikar
Kerosene to LPG Conversion Project Coordinator
Domestic Gas – Marketing Directorate
Indonesia
• Indonesia located in Lat 6°8‘N-11°15‘S Lon 94°45‘E-141°65‘E with total area
5,271 km E–W and 2,210 km N–S including 17,508 islands.
• It’s population around 255 millions with GDP USD 860 Bio and GDP growth rate
5% (2015).
• Jakarta is the capital of Indonesia located in Java Island.
PERTAMINA at A Glance
~79.000.000
Fortune 500 230th world rank year 2016
90++
Source: Data Pertamina, Realization 2014
…World Recognition…..
…Contribution for Indonesia
KiloLitre
products/yr
Product types ~255 millions
Indonesia population
22 LPG Depots
6 VLGC
9 LPG Semi-refrigerated
17 LPG Pressurized Vessels
673 LPG Filling Stations
1.364 LPG Skid Tanks
4.245 LPG Agents
Kero to LPG Conversion Program, the Trigger
Huge fuel subsidy
Kerosene subsidy increases although the
volume reduce significantly.
Conversion
Started
1.3
0.7
1.5 1.6
2.0
3.7 3.9
5.2
1.2
0.8 0.9
0.4 0.6 0.5
12.3
11.7 11.8 11.9 11.4
10.0 9.9
7.9
4.6
2.3
1.7 1.2 1.1 0.9
0
2
4
6
8
10
12
14
0
1
2
3
4
5
6
2001 02 03 04 05 06 07 08 09 10 11 12 13 2014
Subsidy Kero (bio USD)
Volume Kero (mio KL)
0
07
19 44
1,3
9,9
0,6
5,2
3,9
08
1,8
7,9
5,6
56
0,9 0,7
14
57
5,0
1,1
13
0,5 1,1
1,2
3,9 4,4
55
0,4
1,2
1,2
11
54
12
0,9
1,7
1,2
54
09
4,7
1,1
10
2,3
1,2
2,7
1,1
0,8
54
3,2
01
1,3
12,3
0,0 1,0 1,0 1,0
11,9
1,6
04
0,0
11,4
1,1 0,0
03
11,8
1,0
1,5
0,0 0,0
02
0,7
11,7
1,2 1,3
05
2,0
0,0
3,7
10,0
06
0,0 4
0,2
15
0,8
0,7
Switching Journey LPG as The Exceptional Energy
Kero Subsidy (bio USD) Kero Volume (mio KL)
Distributions (mio pcs) LPG PSO (mio MT) LPG NPSO (mio MT)
Kerosene to LPG Conversion 3 Kg Program
Has Covered the Archipelago of Indonesia 2007/2008 2013/2015
2009
2010/2012 Not yet converted
State’s Gross
Subsidy Saving
Up to 17,7 Bio
USD
Nett Saving
16,5 Bio USD
# of
New Investors
& Jobs
529 investors
& 38.000 Jobs Value of
Investment
1,9 Bio USD
Energy Cost
Saving
42%
(2.3 USD/Month)
% of program
Supporters *)
94,1 %
# of Trees
saved **)
90,1 Mio
# of Cars taken
Equivalent **)
5,5 Mio
Indonesian
Government
Business
Environment
End
Users
Environment
CO2 Reduction
Key Success Factors
Executor
Strong &
Effective
Implementation Object / Target
Real Benefit for
End Users
Regulator
Strong
Government
Policy
C
B
A
+ +
Impact to Cylinder, Stoves and Regulator Manufacture
13
31
50
70 70
37
16 23
31 34 26
18
4
7 14 21
17 11
2007 2008 2009 2010 2011 2012
Cylinder Stoves Regulator & hose
Infra
structure
Pre Conversion
(Before 2007)
Conversion Periode
(2007-2015)
Post Periode
(After 2015)
Storage •On shore tank 129,000 MT
•Thruput 4,000 MT/day
•On shore tank 180,000 MT
•Floating tank 180,000 MT
•Thruput 17,000 MT/day
•On shore tank 219,000 MT
•Thruput 21,500 MT/day
Vessel •6 LPG press. vessels @1,800 MT •4 VLGC
•8 LPG semiref vessels
•12 LPG press. Vessels
•6 VLGC
•10 LPG semiref vessels
•17 LPG press. Vessels
Filling Station •66 stations (12 kg)
•Capacity 6,000 MT
•395 stations operated
•Capacity ~ 16,000 MT/day
•600 stations operated
•Capacity ~ 19,500 MT/day
Skidtank •400 unit •1000 unit •1300 unit
1
2
3
4
Infrastructure Consequences
Regulation
LPG Supply Chain
SOURCE
of SUPPLY
DEPO/
TERMINAL
FILLING
STATION
CYLINDER
MAINTENANCE
DISTRIBUTOR
SUB RETAILER
USER
(HOUSEHOLD,
MICRO
BUSINESS) RETAILER
Formal Distribution Informal Distribution
PERTAMINA REGIONAL
GOVERNMENT
*) Subsidized LPG regulated by the Government
DISCLAIMER :
The information in this presentation is general in nature and it is not intended
to be relied upon for any specific purpose. All information provided by
Pertamina in connection to this material, whether oral or written, represents
the current view of Pertamina, and will be subject to change, completion or
amendment without notice. No part of it may be circulated, quoted, or
reproduced for distribution outside Pertamina without prior written approval
from Pertamina. None of Pertamina or any of its employees can be held
directly or indirectly liable for any consequences of reliance upon or use of
the information herein.
PT. Pertamina (Persero)
Jl. Medan Merdeka Timur 1A
Central Jakarta 10110
Indonesia