Market Chatter: Indonesia Tests CNG as Alternative to LPG in Households

MT Newswires Live05-07

Indonesia is testing compressed natural gas (CNG) as a possible substitute for liquefied petroleum gas (LPG) in household cooking, in a move aimed at reducing import dependence and easing state subsidy costs, the Jakarta Globe reported Thursday.

Energy Minister Bahlil Lahadalia said the program is still in the trial phase. Authorities are currently evaluating 3-kilogram (kg) CNG cylinders, focusing on safety standards and design suitability for domestic use. The government hopes the shift could ease pressure from the country's heavy reliance on imported LPG, reportedly.

Indonesia brings in about 8.6 million tonnes of LPG annually, creating a significant fiscal burden. While CNG is already used in larger 12 kg to 20 kg cylinders, adapting it for household-scale use remains the key challenge, the news outlet said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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