Indonesia tests 3 kg CNG cylinders to reduce LPG imports
The government is assessing CNG for household use as annual LPG imports reach 7 million to 8 million tonnes.
Indonesia is testing 3 kg compressed natural gas (CNG) cylinders for households as it prepares an alternative to imported liquefied petroleum gas (LPG), Energy and Mineral Resources Minister Bahlil Lahadalia said on 15 October 2026. The trials are being conducted by the oil and gas testing centre Lemigas and the Directorate General of Oil and Gas.
Speaking at the inauguration of an LPG refinery in Cilamaya, Karawang, West Java, Bahlil said 12 kg CNG cylinders were already in use. He said mass production of the smaller cylinders, if successful, could help reduce reliance on imports by drawing on domestic gas supplies.
Indonesia consumes 8.5 million tonnes of LPG annually, while domestic production capacity is around 1.8 million tonnes a year. Annual imports stand at 7 million to 8 million tonnes. Bahlil said CNG uses C1 and C2 gases that are abundant domestically, and some restaurants and hotels already use it at prices 30 per cent to 40 per cent lower.
The government puts annual LPG subsidies at Rp87 trillion when the Indonesia Crude Price (ICP) is US$70 per barrel. That allocation rises to nearly Rp100 trillion when the average ICP reaches US$90 to US$100 per barrel.
The government is also increasing domestic LPG supply through cooperation between PT Pertamina (Persero) and PT Energi Nusantara Perkasa. The Cilamaya refinery can produce around 160 tonnes daily. Bahlil said that could cover 10 per cent to 12 per cent of demand in Jakarta and West Java, where consumption is 1,000 to 1,500 tonnes a day.
