Indonesia to Replace LPG with CNG, Pertagas Prepares Distribution Infrastructure
PT Pertamina Gas (Pertagas) is preparing infrastructure to support the government’s plan to replace subsidised 3 kg LPG with compressed natural gas (CNG). Corporate Secretary Pertagas Sulthani Adil Mangatur stated the company is ready to distribute the gas and is awaiting the government’s business mechanism for implementation. “In principle, if we are asked to participate, we will be ready to support, depending on our role, for instance regarding infrastructure. When we talk about CNG, conceptually, whether it must be channelled through specific compression stations or gas supply to certain points, that is where we will see Pertagas’ role,” he said at the Tegalgede Gas Compressor Station in Cikarang on Wednesday. He emphasised that any future company expansion will be aligned with government programmes.
The Ministry of Energy and Mineral Resources introduced the project to replace 3 kg LPG with CNG, naming the cylinder ‘CNG Merah Putih’ to utilise domestic resources and reduce dependence on imported LPG. Director General of Oil and Gas Laode Sulaeman explained that the government is currently processing over a dozen prototype CNG cylinders for testing, targeting implementation and distribution to the public this year. “The Minister announced the Merah Putih cylinder yesterday. So this July, prototypes are being made for testing. There are about 15 cylinders. One more stage and it can be implemented and circulated this year,” he said at the DPR RI Building in Jakarta.
Unlike conventional LPG cylinders, CNG Merah Putih uses Type 4 composite material technology, which is significantly lighter and easier for household use. “I want to explain once again that this cylinder material has reached Type 4. Type 1 is all metal, Type 2 starts to have a lighter mixture, up to Type 3 which is still heavy. Therefore, we must make it lighter so that housewives do not feel the replacement is heavy,” Laode stated. The initial procurement of the high-tech cylinders will be imported from China and undergo rigorous safety testing at the Oil and Gas Testing Centre (Lemigas), focusing on valve safety and pressure resistance.
The selling price of CNG Merah Putih will be set equivalent to the current subsidised LPG price to maintain affordability. Simulations indicate that even with price parity, the use of domestic natural gas can reduce energy subsidies by up to 30 percent. Implementation will be carried out in stages, prioritising major cities in Java that already have adequate gas pipeline networks. The Ministry has coordinated with the Upstream Oil and Gas Regulatory Task Force (SKK Migas) to ensure gas allocation availability for the conversion programme.