Government examines utilisation of CNG as LPG substitute

Jakarta (ANTARA) - The government is examining the utilisation of Compressed Natural Gas (CNG) to serve as a substitute for Liquefied Petroleum Gas (LPG), as a strategic step to optimise the use of domestic gas in order to achieve energy independence. “It is currently still under discussion, as I reported earlier, we are making CNG. But this is still in discussion, I must finalise it, and this is one of the best alternatives for us to push for energy independence in the LPG sector,” said Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia in his official statement received in Jakarta on Monday. Currently, national LPG consumption reaches 8.6 million tonnes per year. Of that figure, only 1.6–1.7 million tonnes are produced domestically, with the remainder fulfilled through imports. Bahlil conveyed that the plan for utilising CNG is still in the discussion stage. His side will soon finalise it so that energy independence can be realised. After a Limited Meeting with President Prabowo Subianto at the State Palace in Jakarta on Monday, Bahlil explained that the raw materials for CNG can be supplied from the domestic industry, namely from liquid gas C1 and C2 which are then compressed until reaching a certain pressure. Liquid gas C1-C2 is natural gas dominated by methane (C1) and ethane (C2) components that have been liquefied to facilitate storage and transportation. Currently, there are 57 trading business entities operating in the CNG sector. “CNG is from gas, but it comes from liquid gas C1, C2. And there are many industries in our country for that. But it uses a device that can then be compressed to a pressure of 250 to 400 bar. Thus, its usage can be good. But once again, this is still in the consolidation stage so that we can achieve better results,” said Bahlil. CNG itself is already widely utilised by various industries, such as hospitality, restaurants, and a number of Gas Fuel Filling Stations (SPBG), with raw materials obtained domestically.