{
    "success": true,
    "data": {
        "id": 1720864,
        "msgid": "cng-as-an-alternative-to-lpg-how-much-does-it-cost-1778054948",
        "date": "2026-05-06 11:25:00",
        "title": "CNG as an Alternative to LPG: How Much Does It Cost?",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Energy",
        "summary": "Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, is promoting Compressed Natural Gas (CNG) as a cheaper alternative to Liquefied Petroleum Gas (LPG), potentially reducing costs by 30% due to abundant domestic supplies and lower transportation expenses. With national LPG production declining to 1.6 million tonnes annually, forcing heavy imports, the government aims to accelerate CNG adoption to curb import reliance, save foreign exchange, and cut subsidies, targeting consumption by the public this year starting in major Javan cities. This initiative supports economic growth by leveraging local gas resources and enhancing energy efficiency in households and industries.",
        "content": "<p>Jakarta, CNBC Indonesia - The Minister of Energy and Mineral\nResources (ESDM), Bahlil Lahadalia, continues to seek alternatives to\nreplace Liquefied Petroleum Gas (LPG). One of the options being pursued\nis the use of Compressed Natural Gas (CNG). So, what is the price of\nCNG? The compressed gas alternative is considered to be much cheaper\nthan using LPG. According to studies, Bahlil stated that using CNG could\nbe 30% cheaper. \u201cCNG has already been studied. Its price is much\ncheaper, around 30% cheaper,\u201d Bahlil explained after being met at the\nState Palace, quoted on Wednesday (6\/5\/2026). Why is it cheaper? Bahlil\nexplained that the raw material for CNG gas is abundant in Indonesia,\nsupported by domestic industries. \u201cSo we don\u2019t import it; just the\ntransportation costs alone can cover it,\u201d Bahlil stated. In addition,\nCNG gas, according to Bahlil, is available in almost all regions with\ngas sources. Thus, this can be more efficient. \u201cAnd if asked whether it\nis already operational or not, on a large scale it is already in use. In\nJava regions, CNG is already used. Hotels, restaurants, and MBG kitchens\nare already using it,\u201d he explained. It can be consumed this year. The\nDirector General of Oil and Gas (Dirjen Migas) of the Ministry of ESDM,\nLaode Sulaeman, said they are refining the distribution model and\npreparing supporting infrastructure in the field. He stated that the\nacceleration of this conversion is mainly to reduce the portion of gas\nimports that continue to swell along with population and economic\ngrowth. \u201cIt is targeted to be consumable by the public this year,\u201d he\nsaid during a discussion by ASPEBINDO in Jakarta, quoted on Wednesday\n(6\/5\/2026). The government notes that national LPG production has been\non a declining trend since 2010, now remaining at around 1.6 million\ntonnes per year. This condition forces Indonesia to bring in supplies\nfrom abroad in large quantities to meet domestic needs, which are mostly\nallocated to the household sector. \u201cThat means from year to year, with\npopulation growth and economic growth, we will continue to increase LPG\nimports if we cannot convert to other sources,\u201d he added. Unlike LPG,\nwhose raw materials are limited domestically, the gas source for CNG is\navailable from national oil and gas fields, thus saving foreign exchange\nwhile cutting subsidy costs by up to 30%. \u201cIf this gas comes from our\nown production and the distance is not far, after calculations and\nsimulations, it can save around 30% as already announced by the\nMinister,\u201d he said. In the initial stage, the distribution of CNG is\nplanned to target areas with the most ready supporting infrastructure.\nThe government is focusing on starting simulations of using this type of\ngas in several urban areas before implementing it evenly throughout\nIndonesia. \u201cGradually in big cities in Java first. The roadmap is that\nwe have one because this hasn\u2019t been announced by the Minister yet, but\nthe point is that going forward we will reduce our LPG and replace it\nwith CNG,\u201d he emphasised.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/cng-as-an-alternative-to-lpg-how-much-does-it-cost-1778054948",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}