By Dominikus
The Indonesian government is fast-tracking the development of six Mini LNG terminal projects across the Sulawesi-Maluku region, aiming for operational readiness by 2026, as part of a coordinated national push to replace diesel and coal in both industrial and power generation sectors.
According to the Indonesia Nickel Industry Decarbonization Roadmap released by the Ministry of National Development Planning (Bappenas), the six projects are named Ternate LNG, Kendari LNG, Bau-Bau LNG, Pomalaa LNG, Gorontalo LNG, and Ambon LNG. These terminals are considered critical infrastructure for reducing greenhouse gas emissions from nickel processing facilities, particularly those operating coal-intensive Rotary Kiln Electric Furnace (RKEF) smelters.
The roadmap explains that replacing coal with LNG in smelter operations and non-power thermal processes can significantly lower emissions, but requires immediate investment in LNG storage tanks, regasification units, and supporting pipelines. The LNG infrastructure is expected to serve dual roles, supplying both industrial consumers and PLN's gas and diesel power plants across the six sites.
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This plan complements a separate initiative led by PT PLN Energi Primer Indonesia (PLN EPI), the fuel subsidiary of state utility PT PLN. On December 31, 2024, PLN EPI signed a Shareholders’ Agreement with PT AGP Indonesia Utama, PT Suasa Benua Sukses, and PT KPM Oil & Gas, establishing a Special Purpose Company (SPC) to gasify 10 power plants in the same six locations. The total installed capacity of these facilities is 660 MW.
“This is a strategic move to provide cleaner, sustainable, and domestic-sourced energy, especially in Sulawesi and Maluku where reliance on diesel remains high,” said Iwan Agung Firstantara, President Director of PLN EPI. “LNG will not only reduce emissions but also enhance the reliability of Indonesia’s energy system.”
The Bappenas roadmap recommends a maximum gas price of US$ 6.5 per MMBtu for industrial users to maintain profitability while encouraging coal-to-LNG switching. The initiative also calls for blended financing and public-private partnerships to support infrastructure rollout.
Leonardo A.A.T. Sambodo, Deputy for Food, Natural Resources, and Environment at Bappenas, who oversaw the roadmap development, emphasized the importance of energy transition and green industrial policy in achieving net-zero goals by 2060.
The integration of Bappenas’ strategic planning and PLN’s execution underscores the state’s unified commitment to decarbonizing both industrial and power sectors in eastern Indonesia, particularly within the country’s fast-growing nickel value chain.
Editing by Reiner Simanjuntak
