Indonesian Political, Business & Finance News

Bahlil Reveals Latest Update on 3 kg CNG as LPG Alternative

| Source: CNBC Translated from Indonesian | Energy
Bahlil Reveals Latest Update on 3 kg CNG as LPG Alternative
Image: CNBC

The Indonesian government is advancing its plan to introduce 3 kg compressed natural gas (CNG) canisters as a replacement for subsidised liquefied petroleum gas (LPG), with the third phase of safety testing scheduled for mid-July. Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the development of the high-pressure canisters is being closely monitored to mitigate technical risks. “The first and second testing phases are complete. The third phase is in mid-July. Pray for its success,” Bahlil said during the launch of the mandatory B50 biodiesel programme at the KM 57 rest area on the Jakarta-Cikampek Toll Road, as quoted on Monday.

Director General of Oil and Gas Laode Sulaeman explained that the distribution mechanism for the 3 kg CNG will replicate the existing LPG supply chain, involving agents and sub-agents in collaboration with Pertamina. He clarified that the canisters will remain the property of the business entity, with the public only exchanging empty canisters for full ones. For the initial implementation, the government will import the high-pressure canisters from China, as domestic manufacturing capabilities for the required technology are not yet available.

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