Indonesian Political, Business & Finance News

Government Plans 3 kg CNG Cylinder Scheme to Replace LPG

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Energy

The Ministry of Energy and Mineral Resources (ESDM) is drafting a distribution scheme for 3 kg CNG cylinders as a substitute for the affordable LPG 3 kg for the public. Director General of Oil and Gas at the ESDM, Laode Sulaeman, said consumers would not have to buy the CNG cylinders; “The cylinders belong to business entities, the gas suppliers. So, the scheme being developed now requires the public not to buy the cylinders. The cylinders are borrowed,” Laode said, as quoted by Antara on Thursday, 21 May 2026.

He explained that there will be a per-household limit on the number of 3 kg CNG cylinders allocated. When the gas is exhausted, the public can exchange the cylinders in the same manner as LPG distribution. Over the next three months, the government will focus on locating 3 kg CNG cylinders that have been tested for safety.

“But, for the testing process, we need real cylinders. To obtain real cylinders, at minimum we must order 100,000,” Laode said.

Therefore, during the testing period, prospective 3 kg CNG enterprises will import 100,000 cylinders from China. Laode stressed that it is the prospective enterprise, not the government, that will import the cylinders.

“This is the enterprise that is importing. Not us (the Ministry of Energy and Mineral Resources). They are the ones currently under process,” Laode said.

He noted that once safety aspects are met and the cylinders pass feasibility testing, obtaining SNI (National Standard of Indonesia) certification, the government will conduct a pilot or initial implementation of using 3 kg CNG.

The initial implementation will take place in large Java cities, such as Jakarta, Bandung, Semarang, and Surabaya. “It could be (the initial implementation) by the end of this year,” Laode said.

Energy and Mineral Resources Minister Bahlil Lahadalia stated that trials for the 3 kg CNG size were conducted in China and Indonesia. He said the government continues to evaluate the use of CNG as an alternative to LPG 3 kg to reduce energy import dependence; therefore, trials will continue.

CNG is not a new technology, having been used in hospitality, restaurants, and the Free Nutritious Meal programme (MBG). However, its utilisation until now has been limited to larger 10–20 kilogram cylinders.

These trials are intended to develop small-sized CNG cylinders equivalent to LPG 3 kilograms. According to Bahlil, the main challenges lie in technical aspects due to the higher pressure of CNG gas, around 200–250 bar.

CNG has the advantage of using domestically available feedstocks, including abundant natural gas. The government also identified new gas reserves in East Kalimantan that could be allocated for domestic use.

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