Using LNG for Cargo/Container Trucks a Solution for Subsidized Diesel Fuel Shortage

Trucking companies are expecting the plan to use liquified natural gas (LNG) for trucks will be realized soon, following the assignment between Indonesia’s state-run gas company PT Perusahaan Gas Negara Tbk (PGN) with Indonesia Trucking Companies Association (Aptrindo).

They say the use of LNG will overcome the problem of subsidized diesel fuel rh will supply liquefied natural gas (LNG) for three thousand logistics trucks under an agreement signed with the Indonesian Association of Truck Operators (Aptrindo).

Aptrindo Chairman Gemilang Tarigan explained that the cooperation assignment with PGN will encourage trucking companies to convert their trucks from consuming diesel fuel with LNG.

 PGN and Aptrindo signed agreement on Friday, March 6. The agreement was inked by PGN’s Director of Development and Strategy Syahrial Mukhtar and Aptrindo Chairman Gemilang Tarigan.

The cooperation is aimed at expanding the use of LNG in transportation in a bid to lower the trade balance deficit in the oil and gas sector, curtail fuel oil imports, and support the use of eco-friendly energy.

PGN’s Director of Development and Strategy Syahrial Mukhtar stated that the cooperation will run for a year, starting from mid-2020.

“Currently, these logistics trucks use diesel fuel. Under the agreement, the diesel fuel will be replaced with LNG,” he said, adding that PGN already has the infrastructure of LNG stations for the trucks, Mukhtar added.

According to Gemilang, Indonesia has so many trucks throughout the country, including 20,000 units doing business in Tanjung Priok Port. “This is a very big market,” he said.

Mukhtar explained that some developed countries of Europe, US and China have used LNG for their trucks. Meanwhile, some truck producers, like Scania, Volvo, Iveco, Isuzu, FAM, and Shacman have also designed their trucks to use LNG.

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