T

he Denpasar municipal administration has stopped the construction of an LPG terminal in Pesanggaran last weekend as the project has not yet secured the necessary construction permits, sparking protest from local residents.

The US$10 million terminal was designed to store up to 3,000 tons of LPG, equal to the capacity of the Manggis terminal in Karangasem.

State-owned oil and gas firm PT Pertamina said the project was crucial due to the island’s increasing dependence on LPG on the back of a government program converting kerosene users to LPG. More of the gas is also needed for tourism consumption.

Made Kusuma Diputra, head of the city’s Spatial Planning Agency, said his office had sent a notification letter to Pertamina, requesting the company discontinue all activities in the project.

He said Pertamina had committed violations by failing to secure any permit from his office, the licensing office or the environmental agency.

“We have discussed this case with city council, and I think all of us were cheated. That’s why we immediately sent the warning letter and urged Pertamina to register for official permits for the project.”

He added that the company should also get the approval of local residents. “Pesanggaran residents opposed the projects because they were wary about the possibility of an explosion. They also said the company lacks awareness on social and environment aspects. Pertamina should be held responsible for this.”

Wayan Wiraguna, a Pesanggaran resident, said he strongly opposed the project because it was too close to residential areas, putting residents’ lives at risk.

He said the project was also located near the Suwung dumping site and diesel power plant.

Residents said they often come across leaks in pipes channeling fuel from Benoa to the fuel depot at Pesanggaran, and that not much has been done to tackle the problem.

Frequency of recent LPG canister explosions has also unsettled them.

“These three facilities are located in one route and near our residential area. It makes us feel unsafe.”

Worse, he said, Pertamina has thus far only donated Rp 1 million of the Rp 1.3 billion they spent on building a public hall in their hamlet.

Hamlet representative Wayan Kari, confirmed the community had not approved the project. “We haven’t approved additional machines in the diesel power plants either. It’s the decision of 136 families.”

Head of the city council’s Commission C Kadek Agus Arimbawa said all work on the project should be halted, and suggested Pertamina reassess the project’s location in consideration of residents’ concerns.

Muhammad Iskandar, Pertamina’s general manager of fuel and retail said the company would discuss the project’s viability.

Totok Sugiharto, Pertamina’s sales representative of LPG and gas in Bali, said gas consumption in Bali has increased significantly, and that it was impossible to only depend on Manggis depot to supply the gas.

Manggis has the capacity to store 3,000 tons of LPG, he said, while Bali’s daily gas needs has reached 350 tons, which would be consumed in less than ten days.

According to Pertamina, the  island’s annual LPG consumption in 2007 reached 55,120 tons. It rose sharply to 68,470 tons in 2008 and 80,011 tons last year.