Bahlil Discusses CNG Production Option to Reduce LPG Consumption
The government is initiating discussions on reducing dependence on imports of liquefied petroleum gas (LPG). Currently, national LPG consumption reaches around 8.6 million tonnes per year, while domestic production is only about 1.6-1.7 million tonnes, meaning approximately 7 million tonnes must still be fulfilled through imports.
Energy and Mineral Resources Minister Bahlil Lahadalia stated that to reduce import dependence, the government is continuously studying several substitution alternatives, including the development of dimethyl ether (DME) based on low-calorie coal and the utilisation of compressed natural gas (CNG).
According to Bahlil, CNG is one of the strategic options because it utilises C1 and C2 gases, whose production is substantial domestically. Thus, it can strengthen the use of domestic gas while curbing LPG import dependence. Additionally, its utilisation is deemed more efficient as it can be used for hotels, restaurants, up to natural gas fuelling stations (SPBG), some of which are already operational.
“Now it’s under discussion, as I reported earlier, we are making CNG. But this is still in discussion, I have to finalise it, and this is one of the best alternatives to push for energy independence in the LPG sector that we can achieve,” said Bahlil, quoted from Antara, Tuesday, 28 April 2026.
Furthermore, Bahlil Lahadalia conveyed that the national energy supply situation remains stable, with the quality of national fuel oil, both diesel and petrol, above the national minimum standard. “So, Alhamdulillah, it’s been two months, almost two months since the geopolitical incident in the Middle East regarding the Strait of Hormuz, we are still stable,” said Bahlil.
In addition, the government is ensuring that crude oil stocks for national refinery development needs remain safe and above the national minimum threshold, so the overall national energy supply situation is relatively free from obstacles.
He continued that the government is also preparing several strategic steps to face potential global energy crises, starting from optimising oil and gas lifting, strengthening the B50 biodiesel programme to reduce diesel imports, to developing bioethanol-based fuel through E20. “Those are three things we must do in facing the current world energy crisis,” stated Bahlil.
To support the implementation of B50, the Ministry of Energy and Mineral Resources is currently conducting road tests on various user sectors. One of the road tests is on railway locomotives as part of the readiness for mandatory B50 biodiesel.