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Indonesia eyes compressed gas to replace costly LPG imports
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A worker stands on March 24, 2016, in the middle of a storage and distribution facility for compressed natural gas (CNG) in Semarang, Central Java. The facility acquires gas from the Gundih Field in Cepu, Central Java, to supply fuel for a Tambak Lorok power plant in Semarang. (ANTARA FOTO/R. Rekotomo)
T
he government is considering compressed natural gas (CNG) as an alternative to reduce Indonesia’s dependence on costly imports of liquefied petroleum gas (LPG) to meet domestic needs.
Kurnia Chairi, undersecretary for finance and commercialization at the Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) said on Friday that the technology could provide an answer for regions unreachable by pipeline infrastructure network.
This includes the distribution of surplus gas in East Java without the need to wait for completion of the Cirebon-Semarang (Cisem) natural gas pipeline project.
“We are actively engaging with the oil and gas contractors to use CNG [compressed natural gas],” Kurnia said.
Read also: RI hopes new gas discoveries could add 1.2m tonnes to local LPG production
CNG, a gas fuel made by compressing methane extracted from natural gas wells, is an alternative to LPG, which consists of a mixture of propane and butane produced from natural gas processing and petroleum refining.
CNG has been used widely in the transportation and power generation sectors, including Jakarta’s Transjakarta bus network and bajaj, three-wheeled vehicles with a steering mechanism that resembles motorcycle handles. Meanwhile, LPG is used mostly for cooking and heating.
