LPG Alternative Gas Set to Enter Circulation This Year: Specifications Revealed
The Ministry of Energy and Mineral Resources (ESDM) is targeting the distribution of Compressed Natural Gas (CNG) as an alternative to Liquefied Petroleum Gas (LPG) for public consumption within this year. The primary focus for the initial rollout will be major urban areas, particularly on the island of Java.
The Director General of Oil and Gas at the Ministry of ESDM, Laode Sulaeman, explained that the government is currently finalising distribution patterns and field infrastructure readiness. “The target is that it can be consumed by the public this year,” he stated during an energy discussion organised by ASPEBINDO in Jakarta.
According to Sulaeman, the implementation plan will not cover all regions of Indonesia simultaneously. In the initial phase, distribution will be prioritised for large cities in Java to test the effectiveness of the distribution simulation before expanding to other regions. “It will be gradual, starting with major cities in Java. The roadmap is to reduce our LPG usage and replace it with CNG,” he explained.
The use of CNG is projected to provide subsidy savings of up to 30%, as the gas source will come entirely from domestic oil and gas fields. In addition to foreign exchange efficiency, the government ensures that safety remains the top priority, preparing Type 4 composite fibre cylinders which are claimed to be lighter and stronger. “Research into using CNG has been ongoing for quite some time, and there are two critical components regarding the cylinder and valve that required specific technology, which has now been found and can be implemented,” he added.
Meanwhile, gas management companies have expressed their readiness to support this energy conversion acceleration policy. PT Gagas Energi Indonesia has committed to optimising existing gas refilling infrastructure to ensure a smooth supply to end consumers. “In terms of infrastructure, we are essentially ready to support all government policy directions. Gagas is a subsidiary of PGN, specifically for beyond-pipeline operations,” said Maisalina, Director of Operations and Commercial at PT Gagas Energi Indonesia.
This initiative to shift from LPG to CNG is part of the government’s effort to strengthen national energy self-sufficiency. By utilising abundant domestic natural gas reserves, the government hopes to maintain energy supply stability for the public without being burdened by international market price fluctuations.