What is CNG? Definition, Specifications and Uses
The government is currently examining compressed natural gas (CNG) for use as a cooking fuel for household consumers as a replacement for Liquefied Petroleum Gas (LPG).
Even more extensively, CNG is set to replace the government’s subsidised 3-kilogramme (kg) LPG product.
The reason is that domestic LPG production remains limited due to insufficient propane and butane content in the hydrocarbons from domestic oil and gas production. However, these two components are required to produce LPG. As a result, Indonesia still relies heavily on imports of LPG from other countries.
The Ministry of Energy and Mineral Resources records that domestic LPG needs reach 8.6 million tonnes per year. Approximately 1.6-1.7 million tonnes of this requirement can be produced domestically, but the remainder still depends on imports. Calculated, the share of LPG imports in the country reaches 80-84% of domestic needs.
The government’s current solution to the import dependency being studied is to substitute LPG’s role with CNG. CNG is considered to have a more available domestic supply because the amount of national natural gas production is abundant.
So, what is CNG? Read the following explanation.
Definition and Specifications of CNG
Referring to the definition in Presidential Regulation No. 64 of 2012 on the Provision, Distribution, and Pricing of Gas Fuel for Road Transportation, CNG is gas sourced from natural gas with methane (C1) elements.
The gas is compressed and stored in special pressure cylinders to make it easier to transport, store, and use as vehicle fuel.
According to the official website of PT PGN (PGAS), natural gas itself consists of a mixture of elements such as hydrocarbons comprising methane (C1), ethane (C2), propane (C3), and butane (C4). CNG itself consists of 95% methane content.
Given the diversity of natural gas elements, their processing and utilisation also vary. Natural gas can be processed into LPG, Liquefied Natural Gas (LNG), including into CNG.
Understanding CNG is often accompanied by understanding LPG and Liquefied Natural Gas (LNG). However, it should be noted that CNG, LPG, and LNG are three different things.
The main difference between CNG, LPG, and LNG lies in their physical state and storage pressure. CNG is stored in gaseous form at high pressure, while LPG is in liquid form at moderate pressure and temperature. LNG, on the other hand, is transported in liquid form at very low temperatures.
Utilisation of CNG
CNG utilisation can be for various sectors. From transportation, industry, to households. Here is the explanation according to the official PGN website:
Transportation Sector
For example, in the transportation sector, CNG is used as an alternative fuel for motor vehicles with lower emissions compared to conventional fuels.
CNG vehicles produce fewer amounts of nitrogen oxides and particulates, helping to reduce negative impacts on air quality.
Industrial Sector
CNG in the industrial sector is used as an energy source for various manufacturing processes. The cleanliness and efficiency of CNG make it a choice for environmentally friendly and economical energy sources to meet industrial energy needs.
Household Sector
In this sector, CNG can also serve as an alternative to LPG for cooking and water heating needs. The use of CNG in households is considered more advantageous in terms of economy and more positive environmental impact.
Advantages of CNG
The Indonesian Liquefied & Compressed Natural Gas Companies Association (APLCNGI) once revealed several advantages of using CNG as an alternative replacement for LPG for public needs.
APLCNGI Chairman Dian Kuncoro explained that Indonesia currently has far more abundant natural gas reserves compared to crude oil reserves. According to him, CNG offers distribution flexibility because it can reach remote areas that are difficult to access by conventional gas pipeline networks.
“Speaking about the utilisation of natural gas for households, one effective and efficient method that already exists is through pipeline clustering. And that can serve areas far from pipelines,” he stated at an energy discussion event organised by ASPEBINDO, quoted on Thursday (7/5/2026).
In addition, another advantage from the gas storage technology side is shifting to using composite or carbon materials. Innovations in CNG cylinders have a much lighter weight and stronger durability compared to the Type 1 iron cylinders that have been used in the gas industry.
The use of CNG for the household sector can also be carried out through a pipeline clustering model that has been implemented in several areas such as Yogyakarta and Sleman. That scheme allows communities to enjoy gas flow without having to fully depend on the availability of national transmission pipeline infrastructure.
Furthermore, the use of CNG also has advantages in terms of more stable business economics.
Differences Between CNG and LPG
APLCNGI notes that there are various differences between LPG and CNG, here is a summary:
LPG
Main Composition: Mixture of Propane (C3H8) and Butane (C4H10) gases
Storage Form: Stored in liquid form with low pressure.
Storage Container: Using conventional gas cylinders in sizes of 3 kg, 12 kg, and 50 kg.
Main Use: Focused on household consumption, restaurants, and small industries.
Advantages: Very practical because it is easy to distribute and use by the wider community.
Disadvantages: Has higher emission levels compared to natural gas.
CNG
Main Composition: Methane (CH4)
Storage Form: Remains in gaseous form compressed at very high pressure (200-250 bar).
Storage Container: Using special cylinders (to withstand high pressure).
Main Use: