DENPASAR, DEWATA.NEWS – Bali is entering a new phase in its energy transition with plans to develop a dedicated Liquefied Natural Gas (LNG) terminal in the Serangan coastal area, aimed at reducing reliance on imported fuel and supporting sustainable tourism.
The proposed facility, with a capacity of 145,000 cubic meters, is expected to become a key pillar in strengthening energy security while aligning with Bali’s long-term sustainability goals.
Currently, Bali consumes around 500,000 metric tons of diesel fuel annually, making it one of the largest diesel consumers in Indonesia. The procurement cost is estimated at approximately IDR 8.3 trillion per year, placing significant pressure on national energy spending.
Energy industry practitioner Dicky Ahmad Gustyana said the transition to LNG is no longer optional, but necessary for both economic efficiency and energy resilience.
“With LNG storage in Serangan, the country could save up to USD 500 million annually. More importantly, LNG is sourced domestically from Indonesia, including from the Tangguh gas field in Papua,” he said on Friday (April 10, 2026).
He added that dependence on imported fuel has long exposed Indonesia to global geopolitical risks, particularly during instability in the Middle East, which can directly affect domestic fuel prices and currency stability.
By shifting to domestically sourced LNG, Bali is expected to build a more stable and self-reliant energy system, reducing vulnerability to external shocks.
Beyond economic considerations, environmental factors are also driving the project. As a global tourism destination, Bali requires cleaner energy sources to maintain air quality and environmental standards.
“Bali is the showcase of Indonesia’s tourism. If air quality declines due to widespread diesel generator use, it could affect visitor perception,” Dicky explained.
The LNG transition is also in line with national policy, including plans to phase out 13 diesel-based power plants across Indonesia. The Serangan terminal is expected to support a stable supply of cleaner energy for hotels, restaurants, and other tourism-related industries.
The initiative aligns with the national agenda to reduce fuel imports by up to 20 percent, as part of broader energy security strategies.
With both economic and environmental benefits at stake, stakeholders are expected to support the development of the LNG terminal as a strategic step toward a cleaner and more sustainable energy future for Bali.