Tourism industry against gas refinery

Buleleng tourism industry players and the community have voiced strong opposition to a plan to set up a gas refinery in the regency's all-important tourist area of Lovina.

Regency legislative council speaker Putu Mangku Budiasa said recently he had not received any information regarding the plan.

"We'll check immediately with the Buleleng administration for clarification," he said.

The provincial administration plans to develop a gas refinery to supply the Pemaron power plant in Lovina, 15 kilometers north of regency capital Singaraja.

The planned refinery is part of the Bali administration's plan to provide a reliable supply of electricity for residents.

Regency secretary Ketut Gelgel said the project needed further studies but was part of efforts to increase the island's power supply.

"Bali has always had unreliable and inadequate electricity from the Java-Bali grid's Paiton power plant in East Java," he said.

"The demand for electricity has increased sharply due to the rapid growth of the tourism industry."

Bali has three power plants: Pemaron and Celukan Bawang in Buleleng, and Gilimanuk in West Bali.

The Pemaron power plant produces a maximum 80 MW.

"We can't increase this because of limited diesel and gas supplies," Gelgel said, adding the provincial administration had consequently backed a plan to build a gas refinery near Pemaron.

Bali's supply of power is only 500 MW, forcing state-owned electricity monopoly PT PLN to conduct rolling blackouts since September 2009.

The development of the Pemaron power plant near Lovina Beach in the early 2000s sparked controversy, with critics saying its operation causes environmental problems.

Made Seputra, from the Buleleng Legislative Council, said the legislature would study the plan.

"It's been reported that the gas refinery will be built in 2010, but we've heard nothing about it," he said.