Seeking LPG Replacement, Government Examines Utilisation of This Gas

The government is continuously formulating various strategic steps to optimise the use of domestic gas to achieve energy independence. One domestic energy alternative under review is the utilisation of Compressed Natural Gas (CNG) to serve as a substitute for Liquefied Petroleum Gas (LPG), much of which still comes from abroad. Currently, national LPG consumption reaches 8.6 million tonnes per year. Of that figure, only 1.6-1.7 million tonnes is produced domestically, with the remainder fulfilled by imports. Energy and Mineral Resources Minister Bahlil Lahadalia conveyed that the plan to utilise CNG is still in the discussion stage. His side will soon finalise it so that energy independence can be realised. “Right now, it’s still under discussion, as I reported earlier, we are making CNG. But this is still being discussed, I must finalise it, and this is one of the best alternatives for us to push so that our energy independence in the LPG sector can be achieved,” Bahlil said, quoted on Tuesday (28/4/2026). Bahlil explained that the raw material for CNG can be met from the domestic industry, namely from liquefied gas C1 and C2 which is then compressed to a certain pressure. Liquefied gas C1-C2 is natural gas dominated by methane (C1) and ethane (C2) components that have been liquefied to facilitate storage and transportation. Currently, there are 57 business entities operating in the CNG sector. “If CNG is from gas, but it’s from liquefied gas C1, C2. And we have a lot of that industry domestically. But it uses a device that can then be compressed up to 250 to 400 bar pressure. So its usage can be good. But once again, this is still in the consolidation stage so we can achieve better results,” he clarified. CNG itself is already widely used by various industries, such as hotels, restaurants, and several Gas Fuel Filling Stations (SPBG), with raw materials sourced domestically. Therefore, the government plans to optimise the use of domestic energy. “But for CNG, some is already used. For hotels, restaurants, it’s already used. Some SPBGs are also already using it. And the raw material is not imported, all domestic. Now, this is what we’re trying to find as an alternative. Because in this uncertain geopolitical era, we must find formulations to achieve survival mode. All production available domestically, that’s what we prioritise,” Bahlil emphasised. CNG can also serve as the government’s weapon to face the global energy crisis, in addition to optimising oil and gas lifting, diversifying fuel oil such as the use of B50, and diversifying LPG beyond the utilisation of Dimethyl Ether (DME).