Indonesia fast-tracks CNG use to reduce LPG imports: Bahlil

The Indonesian government is accelerating the adoption of Compressed Natural Gas (CNG) in an effort to replace and reduce Liquefied Petroleum Gas (LPG) imports, Energy and Mineral Resources Minister Bahlil Lahadalia said.

"There is no other way to curb the drain on our foreign exchange reserves and cut subsidies. We need an energy mix. That is why we are pushing for CNG now," Bahlil said in Jakarta on Thursday.

He explained that the government is turning to CNG because it utilizes methane and ethane (C1 and C2 gases), which are abundant domestically.

Furthermore, the minister highlighted that the kerosene-to-LPG conversion program launched in 2006 was initially a good concept and initiative.

However, he noted that the domestic LPG industry was not yet fully prepared for the policy at the time, resulting in a continued reliance on imports to meet national demand.

According to him, the average LPG consumption in Indonesia exceeds 8.5 million metric tons (MT).

However, domestic production stands at just 1.91 million MT, leaving a deficit of approximately 7.47 million MT that must be covered by imports.

Consequently, Bahlil viewed the government's push to accelerate CNG adoption as a critical step toward achieving national energy independence and sovereignty.

He noted that the government, in collaboration with state-run oil and gas company Pertamina, has entered the third phase of trials for using CNG in 3-kilogram cylinders for household needs. This follows the successful implementation of 12-kilogram and 50-kilogram CNG cylinders in the commercial sector.

"The 12-kilogram and 50-kilogram CNG cylinders are already being used in Free Nutritious Meal (MBG) kitchens, as well as in hotels and restaurants," he added.

The minister expressed hope that Indonesia could soon achieve energy self-sufficiency through the use of domestic resources, thereby reducing import dependence in the oil and gas sector.

Source : En Antara News