Government Prepares CNG and DME to Replace LPG

JAKARTA - The government is preparing CNG and DME to reduce LPG imports. However, Minister of Energy and Mineral Resources Bahlil Lahadalia emphasized that the two options are not yet a final decision.

"This is not a decision. This is just looking for some alternatives," said Bahlil at the Presidential Palace complex, Jakarta, Monday, April 27.

DME is made from low-calorific coal. Its shape and use are similar to LPG. However, the project has not been fully implemented. Bahlil said DME has just entered the first stone laying or groundbreaking stage.

CNG is different. The fuel is domestic natural gas. The gas is compressed at high pressure, around 250 to 400 bar, so that it can be stored and used as fuel.

According to Bahlil, CNG has been used in limited hotels, restaurants, and some SPBG. The advantage is that the raw materials do not need to be imported.

"The raw materials are not imported, everything is domestic," he said.

The government considers dependence on imported LPG too risky. National LPG consumption reaches 8.6 million tons per year, while domestic production is only around 1.6 million to 1.7 million tons.

This means that around 7 million tons of LPG still have to come from abroad.

Bahlil said there were three steps that Indonesia must take to face the world energy crisis. First, optimizing the lifting of oil and gas, namely the production of oil and gas ready for sale from domestic fields.

Second, encourage B50 to reduce solar imports. B50 is a mixture of 50 percent palm-based biodiesel and 50 percent solar.

Third, encourage E20 for gasoline. E20 is a mixture of 20 percent ethanol and 80 percent gasoline.

For LPG, the government wants to open more options. Not only DME and CNG, but also other sources that can replace imports.

However, the final decision has not yet been made. Bahlil emphasized that the government would focus on existing options, which have been tested, and are most likely to be developed.