Indonesia eyes China-made CNG cylinders to support LPG shift

Jakarta (ANTARA) - Indonesia plans to import compressed natural gas (CNG) cylinders, likely from China, as part of a strategy to gradually replace subsidized three-kilogram LPG cylinders and reduce reliance on energy imports.

Energy Ministry's Oil and Gas Director General Laode Sulaeman said Indonesia lacks the technology needed to manufacture small CNG cylinders capable of withstanding high-pressure storage.

“To date, the technology is only available abroad. We are not yet capable of producing it ourselves,” Sulaeman told reporters at the Energy Ministry office in Jakarta on Monday.

Asked about potential suppliers, Sulaeman said the government was “currently leaning toward China” for the initial procurement phase.

He said imports would be limited to the early stage of the household fuel transition program, with domestic production expected once usage volumes become commercially viable.

Sulaeman described the policy as part of Indonesia’s broader effort to cut energy imports and improve domestic energy security, with implementation expected to begin this year.

Energy Minister Bahlil Lahadalia said after a May 5 meeting at the Presidential Palace that Indonesia was already familiar with CNG use in hotels, restaurants and the government’s free meals program.

However, he noted that existing CNG distribution mainly uses larger cylinders weighing between 10 and 20 kilograms.

Bahlil said producing smaller cylinders remained challenging because CNG storage requires pressure levels of about 250 bars, far above LPG’s five-to-10-bar range.

The government plans to gradually shift household consumption from LPG to CNG, citing Indonesia’s abundant domestic gas resources as a strategic advantage.

Bahlil also linked the transition plan to newly discovered gas reserves in East Kalimantan, which the government expects to support future domestic energy demand.