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View all search resultsGovt eyes natural gas as LPG alternative amid supply strains
Compressed natural gas (CNG) feedstock, mainly methane and ethane, is more readily available domestically, potentially reducing reliance on costly imported fuels.
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Workers carry out activities near storage tanks at an LPG depot in Tanjung Priok, Jakarta, on May 25, 2018. (Antara/Aprillio Akbar)
T
he government is considering using compressed natural gas (CNG) as a substitute for mostly imported liquefied petroleum gas (LPG) to shield domestic energy supplies from global disruptions caused by the US-Israel war against Iran.
The proposal is still under cross-ministerial discussion and has not yet been adopted as national policy, but officials see strong potential given the country’s relatively abundant natural gas resources, according to Energy and Mineral Resources Minister Bahlil Lahadalia.
“That [CNG] industry is widely available domestically, but it requires equipment to compress gas to around 250-400 bar,” Bahlil told reporters at the State Palace on Monday, adding that the government is working to align stakeholders before moving forward.
CNG is produced by compressing methane extracted from natural gas, while LPG consists mainly of propane and butane derived from gas processing and oil refining.
Indonesia’s limited output of propane and butane has made it heavily reliant on imports of LPG, which is primarily used for household cooking, heating and feedstock for petrochemical plants.
By contrast, CNG feedstock, mainly methane and ethane, is more readily available domestically, potentially reducing reliance on costly imported fuels.
“Hotels and restaurants are already using [CNG]. Some CNG refueling stations are also available. We don’t import the raw materials, they’re all entirely sourced within the country,” Bahlil said.
