Indonesia to Test LNG as Fuel in Railways

Pertamina and state owned railways, Kereta Api Indonesia, will begin testing the use of LNG as fuel in railways as a replacement to high speed diesel, the two companies announced October 11.

The vice-president corporate communications of Pertamina Wianda Pusponegoroi said the move is part of efforts to encourage state owned enterprises to begin using LNG for transportation. This is a follow up of the agreement the two companies signed last year.

"If the pilot project is successful, the company will sell LNG to railways commercially by April 2018," she said, adding that use of LNG will help reduce fuel costs up to rupiah 84.5bn ($10mn) as well as be environmentally friendly.

 Start of trial of LNG as fuel in railways (Credit: Kereta Api Indonesia)

Shardul Sharma