The government's plan to replace 3-kilogram liquefied petroleum gas (LPG) with compressed natural gas (CNG) is both welcome and concerning because of the lack of transparency. CNG is cheaper and its raw material is abundant domestically. LPG, meanwhile, is more practical, but its raw material must be imported.
The conversion from LPG to CNG is part of an energy self-sufficiency program aimed at reducing energy raw material imports by up to Rp 563 trillion a year. The conversion target must be met by the end of this year at the latest. That means millions of Indonesian households will be using CNG cylinders exclusively next year.
It is this rushed implementation that is concerning. Mathematically, converting LPG to CNG can indeed save foreign exchange. Last year, for example, national LPG consumption reached 9.24 million tons. Domestic production of propane and butane – the raw materials for LPG – was only around 1.6 million tons. Importing 80.6 percent of LPG raw materials every year is a drain on the state budget.
The problem is that compressed natural gas cylinders pose greater risks. CNG is stored at a pressure of 200 to 250 bar, while household LPG is stored at 5 to 10 bar. This difference in pressure requires high technological standards for cylinders, valves, regulators, installations, storage, and handling procedures in the event of an explosion.
The risks are significant. Failure of a cylinder or pressure-reduction system could release a large amount of energy. Methane gas leaks also require special handling because the gas is lighter than air. In poorly ventilated spaces, accumulated gas increases the risk of fire or explosion.
Therefore, beyond the calculations of potential savings, the public needs to know the full results of CNG testing before the government imposes it on household kitchens. So far, three tests have been conducted by the Center for Oil and Gas Testing, a research institution under the Ministry of Energy and Mineral Resources. There was also a heat-exposure test at around 850 degrees Celsius in China. The test results have yet to be made public or independently retested.
At the initial stage, the government appointed Pindad to produce up to 30,000 cylinders. The cylinders and their protective casings will be imported from China, while automatic pressure-reducing valves will be imported from Germany. Once again, none of these procurement details have been disclosed transparently.
Rather than immediately adopting CNG because of its lower price and the gimmick of ending imports, the government could actually use the existing natural gas network. As of 2024, gas networks built by Pertamina and Perusahaan Gas Negara (PGN) had reached around 943,000 connections: about 703,000 financed through the State Budget and 240,000 through non-State Budget schemes. The government is also preparing Rp5.2 trillion for gas network construction in 2027.
Gas networks do require substantial upfront investment, particularly to build pipelines in an archipelagic country like Indonesia. But gas network development is a structured policy for supplying household energy. The new CNG conversion program will also require significant funding because it needs comprehensive feasibility testing. Savings mean nothing if safety is not put first.
– Read the complete story in Tempo English Magazine
Source: https://en.tempo.co/read/2118309/the-lpg-conversion-dilemm