CNG Indonesia Category Intelligence
Report Coverage
- Market Scenario
- Procurement Practices followed by Industries in Indonesia
- Major CNG suppliers in Indonesia
CNG Indonesia Market Trends
Category Intelligence on CNG Indonesia covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
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Industry Outlook & Drivers
Regional Market Report on CNG
- Indonesia has the largest proven gas reserves in the Asia Pacific region and the eleventh largest in the world
- Natural gas from the gas pipeline is compressed to CNG at the mother station and is supplied to industries and daughter stations for refueling of NGV
- Presently, there are 60 CNG stations, of which, 46 have been constructed using state fund
Market Overview
Policies and Regulations in CNG Market
Law No.22/2001
- Liberalization of the downstream market to direct foreign investment and ending the monopoly of Pertamina
Gas fuel for Transportation Ministerial Decree No. 25/2017
- The Energy and Mineral Resource Manager has mandated the installation of CNG dispensers at conventional filling stations in Java by 2020
- The transport of CNG for fuel will be exempted from additional costs, such as toll fees
Regulation 11 of 2017
- Allocation of natural gas for power generation to PT PLN and IPPs
- New rule intends to maximize the procurement of natural gas for gas-fired power plants
- Sets a ceiling price for gas used in IPPs
VAT Exemption Regulation No 52
- Certain types of natural gas, such as gas transported through pipelines, LNG and CNG has been exempted from VAT
Procurement Strategies
Mother Station
- It is also know as virtual pipeline network. Piped natural gas is compressed at mother station and the compressed volume is transported via truck to large industries or daughter station
- Industrial consumers having large and consistent volume prefer this engagement model, as the price majorly depends upon the volume and the distance from mother station
Daughter Station
- From daughter station CNG is delivered via truck to the small industries. Transportation vehicles also refill CNG from daughter stations
- There is high competition, as many players are present in this segment
