Palu, C Sulawesi (ANTARA) – Indonesia’s Palu Special Economic Zone (SEZ) in Central Sulawesi has secured a US$20 million (Rp342.8 billion) investment from PT Lingkar Nusantara Gas (LNG) to develop gas infrastructure supporting industrial growth.The strategic move was formalized through a memorandum of understanding signed in Jakarta on Saturday between PT LNG and PT Bangun Palu Sulawesi Tengah (BPST), the region-owned enterprise managing the Palu SEZ. The ceremony was attended by Palu City Head Hadianto Rasyid.”The entry of this investment is a positive signal for our business climate. It shows that Palu has strong space and opportunities for investment,” Rasyid said.He said stable energy supply is a critical prerequisite for industrial expansion and could create a multiplier effect by attracting further investment into the region.BPST President Director Sony Panukma Widianto said improving utilities – including gas, electricity, water, and civil infrastructure – remains a top priority to draw international investors.He added that PT LNG is currently undergoing acquisition by a multinational company, expressing confidence the partnership will meet global technical and commercial standards.The investment will fund the construction of an LNG regasification facility and an internal gas pipeline network, PT Lingkar Nusantara Gas Director Leonard Hastabrata said in a written statement issued in Palu on Sunday.”We are building adaptive infrastructure that follows tenant locations, as part of our commitment to provide efficient and reliable energy solutions,” Hastabrata said.The project aims to deliver reliable energy supply to industrial tenants, with pipeline construction set to begin this year and targeted for completion by 2027.Further development of the LNG receiving terminal is scheduled after 2028 as part of a phased expansion strategy.The company also plans to deploy a virtual pipeline system to extend gas distribution beyond the SEZ.To ensure supply stability, LNG will source gas from the CIMC project in Morowali, with an initial capacity of 10 MMSCFD, while preparing backup supply from an independent LNG facility in Java expected to operate by late 2026.