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Indonesia eyes CNG to reduce reliance on LPG imports

CNG has significant potential because domestic gas resources are more abundant than LPG feedstock..Jakarta (ANTARA) – Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia stated that the government is currently discussing the development of compressed natural gas (CNG) as an alternative to reduce dependence on imported liquefied petroleum gas (LPG).After attending a limited meeting with President Prabowo Subianto at the Presidential Palace Complex in Jakarta on Monday, Lahadalia said that the CNG option is still in the cross-sector discussion and consolidation stage before being finalized as a national energy policy.”The development of CNG is still under discussion and will be finalized. This is an alternative to strengthen energy independence in the LPG sector,” Lahadalia said.He explained that the development of CNG is part of efforts to promote energy independence, particularly by reducing reliance on LPG, most of which is still imported.According to him, CNG is derived from natural gas, primarily consisting of methane (C1) and ethane (C2), which are relatively abundant domestically. The gas is then compressed using specialized equipment to pressures of around 250–400 bar for use as fuel.Lahadalia noted that CNG has significant potential because domestic gas resources are more abundant than LPG feedstock, which depends on propane and butane (C3–C4), whose production in Indonesia is limited.However, he added that the government is still conducting technical studies and inter-agency consolidation to ensure that CNG implementation is effective and delivers optimal benefits for national energy security.“We are still in the consolidation stage to achieve optimal results,” he said.Meanwhile, PT Perusahaan Gas Negara (PGN) is promoting the use of CNG to support state financial efficiency, as it relies on domestic energy sources and can reduce imports.Through its subsidiary, PT Gagas Energi Indonesia, CNG services are being expanded across various regions. PGN Gagas offers Gaslink products for industrial, commercial, and retail sectors, as well as Gasku for land transportation through gas filling stations (SPBG).CNG has also been implemented in several strategic government projects, including providing energy for service kitchens under the Free Nutritional Meal (MBG) program in Batam, Bogor, and Boyolali.With this potential, CNG is seen as a more efficient, practical, and environmentally friendly energy solution, while also expanding public access to clean energy.