Palu Special Economic Zone receives Rp342 billion in investment from PT LNG
GAS INDUSTRY NEWS
Fauzi (Antara Sulteng)
4/20/2026
The Palu Special Economic Zone (SEZ), Central Sulawesi, has received an investment commitment of US$20 million, equivalent to Rp342.8 billion, from PT Lingkar Nusantara Gas (LNG).
"This investment will focus on the construction of an LNG regasification facility and a gas pipeline network within the area," said PT Lingkar Nusantara Gas Director Leonard Hastabrata in a written statement in Palu on Sunday.
He explained that the project is designed to precisely meet the energy needs of tenants. Construction of the network began this year with a target completion date of 2027.
Meanwhile, further development of the receiving terminal facility is scheduled for completion after 2028.
In addition to the physical pipeline network, the company plans to use a virtual pipeline method to reach customers outside the SEZ area.
"We are building adaptive infrastructure, adapting to the locations of our tenants. This is our commitment to providing efficient and reliable energy solutions," he emphasized.
According to him, to ensure operational continuity, LNG supply will be primarily sourced from the CIMC project in Morowali, with an initial capacity of 10 MMSCFD.
As a contingency measure, PT Lingkar Nusantara Gas is also preparing an option for an independent LNG facility on Java Island, targeted for operation by the end of 2026, to strengthen energy reserves for the Palu Special Economic Zone (SEZ).
This strategic step was confirmed through the signing of a memorandum of understanding (MoU) in Jakarta between PT LNG and PT Bangun Palu Sulawesi Tengah (BPST), the Regional-Owned Enterprise (BUMD) developing the Palu Special Economic Zone (SEZ). The signing ceremony was also attended by Palu Mayor Hadianto Rasyid.
Hadianto Rasyid warmly welcomed the collaboration. According to him, the investors' courage to enter a fundamental sector like energy is a testament to Palu City's immense potential.
"This investment is a positive signal for our business climate. It shows that Palu has excellent investment opportunities and space," he said.
He hopes the infrastructure development will act as a magnet, opening the door to further investment in the future.
He continued, stating that a stable energy supply is an absolute prerequisite for the growth of industrial areas. If energy needs are met, the Palu Special Economic Zone (SEZ) will continue to develop and have a domino effect on the broader regional economic growth.
Responding to the collaboration, BPST President Director Sony Panukma Widianto emphasized that improving utilities—gas, electricity, water, and civil infrastructure—is a top priority to attract international investors.
"We chose a partner with a good reputation. PT LNG is currently in the process of being acquired by a well-known multinational company. We happen to be following and supporting this acquisition process. Therefore, we are optimistic that the resulting technical and commercial standards will meet global industry standards," he said.
The Palu Special Economic Zone (SEZ), Central Sulawesi, has received an investment commitment of US$20 million, equivalent to Rp342.8 billion, from PT Lingkar Nusantara Gas (LNG).
"This investment will focus on the construction of an LNG regasification facility and a gas pipeline network within the area," said PT Lingkar Nusantara Gas Director Leonard Hastabrata in a written statement in Palu on Sunday.
He explained that the project is designed to precisely meet the energy needs of tenants. Construction of the network began this year with a target completion date of 2027.
Meanwhile, further development of the receiving terminal facility is scheduled for completion after 2028.
In addition to the physical pipeline network, the company plans to use a virtual pipeline method to reach customers outside the SEZ area.
"We are building adaptive infrastructure, adapting to the locations of our tenants. This is our commitment to providing efficient and reliable energy solutions," he emphasized.
According to him, to ensure operational continuity, LNG supply will be primarily sourced from the CIMC project in Morowali, with an initial capacity of 10 MMSCFD.
As a contingency measure, PT Lingkar Nusantara Gas is also preparing an option for an independent LNG facility on Java Island, targeted for operation by the end of 2026, to strengthen energy reserves for the Palu Special Economic Zone (SEZ).
This strategic step was confirmed through the signing of a memorandum of understanding (MoU) in Jakarta between PT LNG and PT Bangun Palu Sulawesi Tengah (BPST), the Regional-Owned Enterprise (BUMD) developing the Palu Special Economic Zone (SEZ). The signing ceremony was also attended by Palu Mayor Hadianto Rasyid.
Hadianto Rasyid warmly welcomed the collaboration. According to him, the investors' courage to enter a fundamental sector like energy is a testament to Palu City's immense potential.
"This investment is a positive signal for our business climate. It shows that Palu has excellent investment opportunities and space," he said.
He hopes the infrastructure development will act as a magnet, opening the door to further investment in the future.
He continued, stating that a stable energy supply is an absolute prerequisite for the growth of industrial areas. If energy needs are met, the Palu Special Economic Zone (SEZ) will continue to develop and have a domino effect on the broader regional economic growth.
Responding to the collaboration, BPST President Director Sony Panukma Widianto emphasized that improving utilities—gas, electricity, water, and civil infrastructure—is a top priority to attract international investors.
"We chose a partner with a good reputation. PT LNG is currently in the process of being acquired by a well-known multinational company. We happen to be following and supporting this acquisition process. Therefore, we are optimistic that the resulting technical and commercial standards will meet global industry standards," he said.
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