Indonesia Prepares CNG as LPG Replacement, Pertagas Readies Infrastructure

PT Pertamina Gas (Pertagas) is supporting the government’s plan to convert the use of 3 kilogramme (kg) Liquefied Petroleum Gas (LPG) to 3 kg Compressed Natural Gas (CNG). This is being driven through the provision of infrastructure to supply the 3 kg CNG planned by the government. Corporate Secretary of Pertagas, Sulthani Adil Mangatur, stated the company could play a role in distributing the raw gas material for CNG. The company is currently awaiting the government’s decision on the business mechanism to be applied in its implementation. Should the company be assigned a role, it will prepare the infrastructure side. “In principle, if we are asked to participate, we will be ready to support, looking also at our role, for example regarding the infrastructure. If we talk about CNG, conceptually, whether it must be distributed through specific compression stations or the gas supply must be channelled to certain station points, that is where Pertagas’ role might be seen,” he said when met at the Tegalgede Gas Compressor Station, Cikarang. He emphasised that any future company infrastructure expansion will always be aligned with government programmes. “Regarding the technicalities, we must also see from the oil and gas side regarding the provisions or the business mechanism; we will see what the government decides,” he stressed. The Ministry of Energy and Mineral Resources (ESDM) has introduced the project to replace 3 kg LPG with 3 kg CNG. The CNG canister is named ‘CNG Merah Putih’ to utilise domestic resources and reduce dependence on LPG, which is still dominated by imported products. Director General of Oil and Gas at the Ministry of ESDM, Laode Sulaeman, explained that the government is currently processing dozens of prototype CNG canister units to enter the trial phase. The target is for the 3 kg CNG canister to be implemented and distributed to the wider public this year. “The Minister announced the Merah Putih canister yesterday. So, this July, a prototype is being made for testing. There are dozens, maybe around 15 canisters. One more stage and it can be implemented and circulated this year,” Laode said when met at the DPR RI Building, Jakarta. Unlike conventional LPG canisters, the CNG Merah Putih uses Type 4 canister technology made from composite materials. The use of this technology is considered to provide advantages in terms of load because it is much lighter, making it easier to use at the household level. “I want to explain once again that this canister material has reached type 4. Type 1 is all metal, type 2 has started to have a mixture that lightens it, up to type 3, but it is still heavy. Therefore, we must make a lighter one so that housewives will not feel that this replacement is heavy,” Laode said. For the initial stage, the government is procuring these high-tech canisters through an import scheme from China. A series of tests will be conducted at the Oil and Gas Testing Centre (Lemigas), particularly concerning safety factors on the valve and the canister’s resistance to gas pressure. “Currently, it is just from China. We test it at Lemigas; it must undergo pressure testing, and the most important thing is the safety of the valve and the canister. In China, the canister and valve are integrated,” he continued. The selling price of CNG Merah Putih will be set equivalent to the current subsidised LPG price to maintain affordability for the public. Through this simulation, the use of domestic natural gas is believed to be able to significantly reduce the energy subsidy burden. “The price is the same. The current simulation is still equalised; even with equalisation, the subsidy can drop by up to 30%. If the volume is massive, we have the bargaining power to ask them to build here,” Laode revealed. The implementation of 3 kg CNG will be carried out in stages, prioritising major cities in Java that already have adequate gas pipeline infrastructure networks. The Ministry of ESDM has coordinated with SKK Migas to ensure the availability of gas allocation to support the smooth running of the energy conversion programme. “Yes, we prioritise those connected to pipelines first. That is why the Minister has said the trials will be in major cities in Java where the gas pipeline routes are more extensive. We have discussed it with SKK Migas; once it runs, the gas will be available,” he concluded.