As an Alternative Energy! The Shortcomings and Advantages of CNG Compared to LPG

The government is currently examining the distribution of compressed natural gas, or Compressed Natural Gas (CNG), as an alternative replacement for Liquefied Petroleum Gas (LPG) for cooking fuel among household consumers.

One of the main objectives is to reduce the portion of LPG imports to meet domestic needs.

The Ministry of Energy and Mineral Resources (ESDM) records that domestic LPG needs reach 8.6 million tonnes per year. Approximately 1.6-1.7 million tonnes of these needs can be produced domestically, but the remainder still relies on imports. Calculated, the LPG import portion reaches 80-84% of domestic needs.

Like a snowball effect, the high portion of domestic LPG imports also impacts the high subsidies that the state must bear for 3kg LPG. In fact, the government records that subsidies for 3kg LPG per year have reached Rp 87 trillion.

From this basis, Minister of ESDM Bahlil Lahadalia stated that the government is conducting trials for the development of CNG in the form of 3 kilogram (kg) cylinders, with the target to implement it this year, 2026.

The plan prioritises the application of 3kg CNG, especially in major cities on the island of Java first.

So, what are the advantages and disadvantages of utilising CNG compared to LPG?

Referring to the definition from Presidential Regulation No. 64 of 2012 on the Provision, Distribution, and Pricing of Gas Fuel for Road Transportation, CNG is a gas sourced from natural gas with methane (C1) elements.

Meanwhile, LPG, referring to Presidential Regulation No. 38 of 2019, is a liquefied hydrocarbon gas with pressure to make it easier to store, transport, and use. LPG generally consists of propane gas (C3), butane (C4), or a mixture of both.

Citing the official website of PT PGN (PGAS), natural gas itself consists of a mixture of elements such as hydrocarbons comprising methane (C1), ethane (C2), propane (C3), and butane (C4). CNG itself consists of 95% methane content.

Given the diversity of natural gas elements, the processing and utilisation also vary. Natural gas can be processed into LPG, into Liquefied Natural Gas (LNG), including into CNG.

Understanding CNG is often accompanied by an understanding of LPG and LNG. However, it should be noted that CNG, LPG, and LNG are three different things.

The main difference between CNG, LPG, and LNG lies in their physical state and storage pressure. CNG is stored in gaseous form at high pressure, while LPG is in liquid form at moderate pressure and temperature. LNG, on the other hand, is transported in liquid form at very low temperatures.

Advantages

Citing the official website of PT PGN, CNG has several advantages in its utilisation, some of which include:

Low Emissions: CNG produces lower emissions compared to conventional fuels, helping to reduce air pollution.

Stable Prices: CNG prices tend to be more stable compared to other fossil fuels because natural gas is less subject to oil market fluctuations.

Sustainable Energy Source: CNG is obtained from abundant natural gas sources, making it a sustainable and environmentally friendly option.

In addition, the Indonesian Liquefied & Compressed Natural Gas Companies Association (APLCNGI) has highlighted several advantages of using CNG as an alternative replacement for LPG for public needs.

APLCNGI Chairman Dian Kuncoro explained that Indonesia currently has far more abundant natural gas reserves compared to crude oil reserves. According to him, CNG offers distribution flexibility as it can reach remote areas that are difficult to access by conventional gas pipeline networks.

“Speaking about the utilisation of natural gas for households, one effective and efficient method that already exists is indeed through pipeline clusters. And that can serve areas far from pipelines,” he said during a discussion by ASPEBINDO, quoted on Thursday (7/5/2026).

In addition, another advantage from the gas storage technology side is the shift to using composite or carbon materials. Innovations in CNG cylinders have a much lighter weight and stronger durability compared to the Type 1 iron cylinders that have been used in the gas industry so far.

The use of CNG for the household sector can also be carried out through a pipeline clustering model that has been implemented in some areas such as Yogyakarta and Sleman. This scheme allows the public to enjoy gas flow without having to fully rely on the availability of national transmission pipeline infrastructure.

Furthermore, the use of CNG also has economic advantages in terms of more stable business economics.

Disadvantages

From the various advantages of CNG that have been outlined, this type of gas is not without shortcomings. Citing the PT PGN website, CNG disadvantages include:

Limited Infrastructure: CNG refilling infrastructure is still limited in some areas, limiting its accessibility.

Storage Space: CNG requires considerable storage space, especially for motor vehicles, because natural gas needs to be compressed at high pressure.

Potential Risks

Citing research in the Journal of Safety Science and Resilience released on the Science Direct website in September 2024 titled “Compressed Natural Gas (CNG) as a fuel and the associated risks: A quantitative analysis in the scenario of a developing country”, it is mentioned that CNG still has several potential risks in its use.

From the four categories of potential risks studied, namely system/infrastructure risks, human error, economic risks, and environmental risks, the risks of using CNG are generally considered low.

However, the research shows that unsafe CNG refilling station designs can be a significant risk from the system/infrastructure potential risk category. The research indicates this.