Indonesia plans 3 kg CNG cylinders to cut energy costs and LPG imports

Indonesia is planning to develop compressed natural gas in 3 kilogram cylinders as part of efforts to reduce energy costs and expand fuel options for households and small industries, Energy and Mineral Resources Minister Bahlil Lahadalia said.

The initiative aims to provide a lower cost alternative to liquefied petroleum gas, with CNG estimated to be 30% to 40% cheaper. The fuel is already being used in hotels, restaurants, and government food programs.

CNG is produced by compressing natural gas, mainly methane and ethane, and stored in high pressure cylinders at 200 to 250 bar.

Industry data shows Indonesia’s CNG production capacity ranges between 30 million and 50 million standard cubic feet per day, with most current usage serving industrial customers.

Read also: Government eyes CNG to reduce reliance on LPG imports

The development of small cylinder CNG remains limited, requiring additional infrastructure such as mother stations along the Trans Java gas pipeline and connections to regasification terminals in Jakarta and Sidoarjo.

There are currently 33 CNG trading companies operating in Indonesia, including PT Gagas Energi Indonesia, a subsidiary of PT Perusahaan Gas Negara.

The company operates gas filling stations across several provinces and supplied more than 600 industrial customers in 2025, with total distribution reaching around 4.6 million MMBTU.

Officials said the program is intended to expand energy choices rather than replace existing fuels, with supply expected to come from domestic gas fields and LNG sources such as Tangguh and Bontang.

Editing by Alexander Ginting