REPUBLIKA.CO.ID, JAKARTA -- The National Energy Council (DEN) has welcomed the initiative of the Indonesian Chamber of Commerce and Industry (Kadin) to build Liquefied Natural Gas (LNG) receiving terminals.

"The terminals could make the system more efficient as they suit the nation's geographical conditions," Rinaldy Dalimi of DEN said here on Wednesday (14/1).

He is optimistic that the proposal will be realized by the chamber, with the support of investment from private sectors to construct the terminals.

Earlier, Kadin had announced that LNG receiving terminals will be constructed in the 34 provinces of the country to support the regional economy through the equitable distribution of industrial development.

Kadin's Vice Chairman for Disadvantaged Regions Natsir Mansyur noted that the construction would be carried out gradually over the next five years.

The project stemmed from the increasing domestic demand for LNG, which is now 10 million metric tons, or half the amount exported.

An LNG receiving terminal is a facility to convert the liquefied form back to natural gas through the process of regasification.

Mansyur estimates that the construction of the LNG receiving terminals in the 34 provinces will include an investment of some US$8 to 10 billion, with the classification adjusted according to the geographical conditions of each region.

A small terminal has LNG storage tanks with a capacity of 20,000 to 50,000 cubic meters, while the large ones have that of more than 160,000 cubic meters.

In the last eight years, Indonesia has been able to allocate 50 percent of LNG towards domestic needs and export the rest.