Natural gas transportation business contribution to Indonesia's national energy policy and carbon emission offset by on-grid solar PV utilization: Surabaya, East Java, Indonesia

Abstract

Corporations need to assess their practices in environmental management. PT Pertamina Gas, as energy SOE which runs natural gas transportation, is considered to contribute to National Energy Policy particularly in terms of achieving 23% part of the energy mix by renewable resources. Pertamina Gas Operation East Java Area transports natural gas in a 370 km subsea pipeline to 69 km onshore. It needs 1,459.73 GJ for supporting facilities derived from electricity and fuel in 2019 alone. This study aims to analyze energy management practices in the natural gas business with related policies. The 5.25 kwp on-grid Solar PV utilization, an in-office area located in Surabaya, substitutes 3.3% electricity from state-owned provider source, as a result, 2% part of its energy mix profile fulfilled by renewable energy. It reached 7,281.1 kWh per year. Its cost and benefits analysis show positive cash flow in year-15; PI >1. Its levelized cost of energy (LCoE) is Rp 949.72, which is competitive enough to East Java electricity generation cost (BPP). It is followed by coal-based power carbon emission reduction to about 5.95 ton CO2 in a year. Thus, it is possible for East Java Area to contribute in corporate sustainability policy and to achieve the global goals.