JAKARTA: The 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 multi-ministerial discussions 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.
“The 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.
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