Bahlil: Government Reviewing CNG Development to Reduce LPG Imports

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the government is discussing the development of compressed natural gas (CNG) as one alternative to reduce dependence on liquefied petroleum gas (LPG) imports.

After attending a limited meeting with President Prabowo Subianto at the Presidential Palace Complex in Jakarta on Monday, Bahlil said the CNG option is still in the discussion and cross-sector consolidation stage before being finalised as a national energy policy.

“The development of CNG is still under discussion and will be finalised. This is one alternative to strengthen energy independence in the LPG sector,” Bahlil said.

According to him, CNG comes from natural gas with main components of methane (C1) and ethane (C2), the availability of which is relatively abundant domestically. The gas is then compressed using special equipment to a pressure of around 250–400 bar so that it can be used as fuel.

In his view, the utilisation of CNG has great potential because domestic gas sources are more abundant compared to LPG raw materials, which depend on propane and butane (C3–C4) with limited production in Indonesia.

“It is still in the consolidation stage to make the results more optimal,” he said.

Meanwhile, PT Perusahaan Gas Negara Tbk (PGN) is promoting the use of CNG as an effort to support state financial efficiency, given that its energy source comes from domestically, thereby reducing energy imports.

The utilisation of CNG has also been implemented in several strategic government projects, including providing energy for the kitchen services of the Free Nutritious Meals (MBG) programme in Batam, Bogor, and Boyolali.

With that potential, CNG is seen as a more efficient, practical, and environmentally friendly energy solution while expanding public access to clean energy.