Indonesia Eyes CNG as LPG Alternative After China Testing Nears Finish
Tuban, East Java. Indonesia expects to complete trials of 3-kilogram compressed natural gas (CNG) cylinders within the next two months, paving the way for a nationwide rollout of a lower-cost alternative to imported liquefied petroleum gas (LPG), Energy Minister Bahlil Lahadalia said on Thursday.
The government is seeking to replace a portion of Indonesia's heavily import-dependent LPG consumption with domestically supplied natural gas, a move aimed at strengthening energy security and reducing the country's subsidy burden.
Bahlil said testing of the small CNG cylinders, which is being conducted in China, has entered its third and final phase.
“The project has now entered the third stage of testing. God willing, we expect the process to be completed in July or August,” Bahlil said during a visit to Tuban, East Java.
While CNG technology has long been used by hotels, restaurants, and industrial customers in Indonesia, it has traditionally relied on large cylinders exceeding 10 kilograms.
The current initiative focuses on developing a compact 3-kilogram cylinder comparable in size to Indonesia's widely used subsidized LPG cylinders, making it suitable for household use.
According to Bahlil, Indonesia turned to China because it has not yet developed the capability to manufacture small, high-pressure CNG cylinders that meet international safety standards.
The technical challenge lies in the significantly higher pressure required to store compressed natural gas. CNG cylinders typically operate at pressures of between 200 and 250 bar, compared with just 5 to 10 bar for conventional LPG cylinders.
“Once the testing is complete, we can begin promoting broader adoption in areas where implementation is feasible,” Bahlil said.
The government has been evaluating CNG as a long-term substitute for subsidized 3-kilogram LPG cylinders in an effort to reduce dependence on imported fuel.
Indonesia consumes more than 8.5 million metric tons of LPG annually but produces only about 1.91 million metric tons domestically, leaving approximately 7.47 million metric tons to be imported each year.
Earlier this week, Bahlil said the government spends around Rp 120 trillion ($6.7 billion) annually importing LPG before selling it domestically at subsidized prices.
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