Indonesian Political, Business & Finance News

LPG 3 kg to Be Replaced by CNG, Trial to Begin in July

| Source: DETIK_BALI Translated from Indonesian | Energy
LPG 3 kg to Be Replaced by CNG, Trial to Begin in July
Image: DETIK_BALI

The Ministry of Energy and Mineral Resources (ESDM) is preparing the use of 3 kilogram (kg) Compressed Natural Gas (CNG) as an alternative to replace 3 kg LPG. This move aims to reduce Indonesia’s dependence on LPG imports. Based on data from the Ministry of ESDM, national LPG demand reaches around 8.5 million tonnes per year, while domestic production is only around 1.8 to 1.9 million tonnes. This supply shortfall has been met through imports. To reduce the import burden, the government has begun preparing a programme for 3 kg CNG canisters. The Director General of Oil and Gas at the Ministry of ESDM, Laode Sulaeman, stated that the selling price of the 3 kg CNG will be the same as that of 3 kg LPG, so as not to burden the public. He claimed that even with the same price, the state could cut energy subsidies. Laode said that with the price being equal, subsidies could fall by up to 30 percent. Previously, Laode mentioned that around 100,000 3 kg CNG canisters would be imported from China to replace LPG canisters, as the domestic industry is not yet capable of producing them. He said this import is the initial step in implementing CNG in 3 kg canisters, aimed at reducing the currently high LPG imports while serving as a replacement for 3 kg LPG. The technology is considered high, and currently only foreign manufacturers can produce it. The 3 kg CNG canister has been named the ‘Red and White Canister’. The Ministry of ESDM is currently preparing 15 prototypes of the 3 kg Red and White CNG canister for testing at Lemigas. The trial is scheduled for July 2026. The canister to be used is a Type 4, made from composite fibre material. The Director General of Oil and Gas explained that the canister must undergo pressure tests to ensure the safety of the valve and the canister body, noting that in China, the canister and valve are integrated. If the test results are good, the canisters can be distributed to the public. However, Laode noted that distribution will be carried out in stages. The trial will be prioritised in major cities, especially in Java, which are close to gas pipeline networks, to make the price more economical.

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