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View all search resultsSouth Sumatra CNG station on fast track to slash LPG imports
In a bid to cut annual LNG imports totaling around Rp 500 trillion to fill a gaping shortfall of nearly 7 million tonnes, the government is pushing to accelerate development on a CNG central compression station to exploit substantial methane reserves in South Sumatra.
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Workers unload 12-kilogram canisters of liquefied petroleum gas from Maluku capital Ambon on April 25, 2026, at Ahmad Yani Port in Ternate, North Maluku. (Antara/Andri Saputra)
T
he government is accelerating the development of a central compression station for compressed natural gas (CNG) in Tanjung Enim, Muara Enim regency, South Sumatra, in an effort to slash imports of liquefied petroleum gas (LPG).
The project signals a major drive to commercialize the region's substantial reserves of coal bed methane (CBM), which could be converted to CNG.
Following a site inspection on Friday, Presidential Chief of Staff Dudung Abdurachman acknowledged lingering administrative hurdles, particularly regarding the detailed spatial plan, but stressed that work on the project would proceed to meet the target by the year-end.
"Administrative completion must still comply with the applicable mechanisms and regulations," Dudung said, as quoted by detikFinance.
“However, to meet the accelerated completion target, administrative work and on-site preparations will move forward in parallel,” he said, emphasizing that given the urgency, construction would commence immediately while the remaining paperwork was finalized.
CNG is produced by compressing methane that is extracted from natural gas, while LPG consists mainly of propane and butane derived from gas processing and oil refining.
Limited domestic output of propane and butane has made the country heavily reliant on imports of LPG, which is primarily used for household cooking, heating and as feedstock for petrochemical plants.
