Three Indonesian State Owned Firms Plan LNG Terminal at Bali

Three Indonesian state owned entities are expected to team up to build a LNG receiving terminal in Tanjung Benoa, Bali.

The move by electricity firm PT Perusahaan Listrik Negara (PLN), PT Pertamina and port operator PT Pelabuhan Indonesia III (Pelindo III) to construct the terminal is to boost country’s gas supply, reported Jakarta Post newspaper.

State-Owned Enterprises Minister Dahlan Iskan said in Jakarta on Thursday that the LNG would be supplied to Bali’s power plants, which at present mostly use diesel oil.

According to Jakarta Post, development of the facility will comprise of two stages: the construction of floating storage, and the building of an on-land receiving terminal. 

The floating storage will serve as a temporary facility before the on-land receiving terminal, which will be built within the area of the Tanjung Benoa port operated by Pelindo III, is ready for operations.

The on-land receiving facility is now under construction and will take two years to complete, the newspaper reported.

“We will rent floating storage facilities while we wait for the completion of the on-land terminal,” Iskan said, adding that he hoped on-land facility would be able to begin operations next year.