Get Ready: New Gas to Replace LPG to Circulate in Indonesia

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia is promoting the use of 3-kilogram Compressed Natural Gas (CNG) as an alternative to 3 kg Liquefied Petroleum Gas (LPG), citing Indonesia’s abundant gas resources. Bahlil noted that Indonesia currently imports 80% of its total LPG requirement because C3 and C4 gas feedstocks are scarce domestically, whereas C1 and C2 types are plentiful. ‘That is why we are now pushing CNG. CNG uses C1 and C2 gas, which is abundant in Indonesia. We recently discovered a giant find at ENI in East Kalimantan of 5 TCF plus 2 TCF, with condensate of around 200,000 barrels equivalent. By 2028-2029, production could reach 3,000 Mmscfd,’ Bahlil explained at the CNBC Indonesia Energy Forum. The government is now entering the third phase of trials for 3 kg CNG cylinders, while 12 kg and 50 kg CNG cylinders are already used in commercial sectors, such as kitchens for the Free Nutritious Meal programme, hotels, and restaurants. He stressed that CNG is not a new technology, but the government is now developing its use for household needs. ‘This is not something new that suddenly appeared. It has existed for a while. But for the people who receive subsidies, they must use the 3 kg cylinder. The pressure is 200 to 250 bar. That is what we are currently testing,’ he said. The government has officially introduced the project to replace 3 kg LPG with CNG, naming the cylinder ‘CNG Merah Putih’ to utilise domestic resources and reduce reliance on imported LPG. Director General of Oil and Gas Laode Sulaeman explained that dozens of prototype cylinders are being processed for testing, with implementation and distribution targeted for this year. Unlike conventional LPG cylinders, CNG Merah Putih uses Type 4 composite material technology, making it significantly lighter and easier for household use. For the initial phase, the high-tech cylinders are being procured from China and will undergo rigorous safety testing at the Lemigas testing centre, focusing on valve safety and pressure resistance. The selling price will be set equivalent to subsidised LPG to maintain affordability, with simulations showing that subsidies could be reduced by up to 30%. Implementation will be phased, prioritising major cities in Java that have adequate gas pipeline infrastructure, with coordination between the Ministry and SKK Migas to ensure gas supply availability.