The Oil and Gas Downstream Regulatory Agency (BPH Migas) is promoting\nthe utilisation of Compressed Natural Gas (CNG), or compressed natural\ngas, based on pipelines, and accelerating the development of\nmini-liquefied natural gas (LNG) for household needs. According to\nFathul Nugroho, a member of the BPH Migas Committee, this step will\nreduce dependence on LPG imports, which continue to rise.<\/p>\n
Fathul stated that developing CNG-based gas networks and mini LNG\nwill expand energy options for the public beyond subsidised LPG. \u201cThese\nenergy choices can enhance the effectiveness of gas distribution and\nsupport the government\u2019s targets in converting to safer, cleaner, and\nmore efficient energy,\u201d he said, as quoted from a written statement on\nSaturday, 9 May 2026.<\/p>\n
According to Fathul, household energy needs are currently dominated\nby subsidised LPG, which burdens the state finances. Indonesia\u2019s LPG\nimports have reached about 81% of total national needs.<\/p>\n
Fathul said that the utilisation of CNG is actually starting to\ndevelop in the commercial sector, such as hotels and restaurants. In the\nNational Medium-Term Development Plan 2025\u20132029, the government targets\nbuilding household gas networks to reach 350,000 connections by\n2029.<\/p>\n
To achieve this target, BPH Migas is requesting acceleration of\nregulations related to building CNG mother stations and mini LNG\nterminals so that investments can enter more quickly.<\/p>\n
Fathul also encouraged accelerating the use of CNG and LNG through\nthe Government and Business Entity Cooperation (KPBU) scheme. This\napproach can support gas infrastructure development, especially in\neastern Indonesia, which faces greater geographical challenges.<\/p>\n
\u201cTo expand the reach of household gas using CNG, it can be done by\nconverting Gas Fuel Filling Stations (SPBG) into Mother Stations.\nMeanwhile, for non-pipeline household gas distribution, mini-LNG can be\nused,\u201d said Fathul.<\/p>\n
Previously, the Ministry of Energy and Mineral Resources (ESDM)\ntargeted the utilisation of CNG or compressed natural gas for household\nneeds to be implemented in August 2026, replacing LPG.<\/p>\n
According to calculations by the Ministry of ESDM, substituting LPG\nwith CNG can save up to 30% of the total subsidy budget. \u201cWith the same\nprice as 3-kilogram LPG, the state can save 30% because its subsidy is\nlower than the LPG subsidy,\u201d said the Director General of Oil and Gas at\nthe Ministry of ESDM, Laode Sulaeman, on Tuesday, 5 May 2026.<\/p>\n
Laode said that the utilisation of compressed natural gas will reduce\nIndonesia\u2019s dependence on imports of liquefied natural gas or LPG. So\nfar, LPG imports have been a major burden on the state budget, with\nsubsidy values reaching Rp 80.3 trillion per year.<\/p>\n
What is the difference between CNG and LPG? Although both are gases,\nthey differ from the material side to the process of obtaining them. CNG\ncomes directly from natural gas, which mostly contains methane, then\npurified, and compressed at high pressure without changing its form to\nliquid.<\/p>\n
Meanwhile, LPG is obtained from the processing of crude oil or\nnatural gas separated into propane and butane produced in refineries,\nthen liquefied to make it easier to store and distribute.<\/p>\n
Because the way of obtaining them differs, CNG remains in gas form in\nhigh-pressure cylinders. Whereas LPG is stored in liquid form and turns\ninto gas when used.<\/p>\n
In Indonesia, LPG is more practical for household needs because it is\neasy to distribute in cylinders. Whereas CNG is generally distributed\nusing pipeline networks because it is used for manufacturing industries\nand urban gas networks.<\/p>\n
Nevertheless, Laode said that CNG distribution does not have to rely\non pipeline networks. As an alternative, CNG can be channelled using\nhigh-pressure cylinders. Those cylinders are designed with special\nmaterials to withstand the compressed gas.<\/p>\n
According to him, this scheme is actually not new because the use of\nCNG in cylinders has been applied on a limited basis earlier, especially\nin the commercial sector, such as restaurants and hotels.<\/p>\n
From a safety perspective, he assured that current CNG cylinder\ntechnology has developed to the fourth generation, making it quite\nreliable. \u201cThe most important thing is that it has been patented. I\ntarget obtaining the patent within three months. So, it\u2019s not making new\nand assembling cylinders,\u201d said Laode.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bph-migas-promotes-cng-distribution-via-pipelines-1778323969", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }