Environment minister clears Bali LNG terminal project

Environment Minister Hanif Faisol Nurofiq has issued an Environmental Feasibility Decree (SKKL) for the planned liquefied natural gas (LNG) terminal project in Bali, marking a key regulatory step for a project that has faced repeated delays.

“Regarding LNG, we have already issued the SKKL, based on considerations of energy needs,” Hanif said on Friday on the sidelines of a beach clean-up activity at Kedonganan Beach, Badung Regency.

Hanif said the offshore LNG terminal planned near Sidakarya Village, Denpasar, is currently the fastest option to safeguard Bali’s energy security, particularly after the island experienced prolonged power outages in 2025.

The issuance of the SKKL followed cross-ministerial deliberations, including input from the Ministry of Energy and Mineral Resources (ESDM), and was not decided by the Environment Ministry alone, he said.

“We have experienced blackouts, and Bali needs a stable energy supply. The fastest solution available at the moment is LNG,” Hanif said.

While acknowledging that gas-fired power generation is not a low-carbon solution, Hanif said LNG would serve as a transitional energy source toward a cleaner system, given its lower emissions profile compared with existing fuels.

Read also: Bali LNG terminal delayed again over lack of marine permit

The minister also addressed public opposition from communities near the proposed terminal site, saying extensive socialization and consultation had been carried out over several years.

“There have been repeated meetings and socialization efforts. The social scoping and assessment process took up to three years. Even the original plan, which placed the LNG terminal 500 metres from the coast, was revised to 3.5 kilometres offshore. That was already the maximum relocation proposed,” Hanif said.

The Bali LNG project has faced multiple delays since it was first proposed in 2021. In late 2025, the Ministry of Environment confirmed that the project had to restart its environmental permitting process after failing to secure a marine spatial utilization conformity permit (PKKPRL), a prerequisite under Indonesian law. Changes to the project’s design and location also required the withdrawal of its previous environmental application.

The offshore relocation—about 3.5 kilometres from Sidakarya Beach—was intended to reduce environmental impacts and public opposition, according to both central and regional authorities.

The LNG terminal is being jointly developed by PT PLN Gas and Geothermal (PLN GG), a subsidiary of state electricity utility PT PLN (Persero), and Bali-based energy firm PT Dewata Energi Bersih (DEB). The project is designed to supply gas to the 300-megawatt dual-fuel power plant in Pesanggaran, alongside a relocated 200-MW gas-fired plant from East Java.

Hanif said the government’s decision to issue the SKKL reflects its support for Bali’s push toward lower emissions and lower energy intensity, while continuing to promote renewable energy development.

“What is important now is ensuring Bali does not face an energy shortage. At the same time, we will continue to increase the use of renewable energy,” he said.

Although the environmental feasibility decree has been issued, Hanif said he has not yet directly monitored the project’s progress and stressed that further evaluations will continue in line with the remaining regulatory stages.

Editing by Reiner Simanjuntak