The funding agency announced on Thursday it would provide a grant to PT Nusatama Properta Panbil to "promote continued economic growth and energy security" in Indonesia.
PT Nusatama Properta Panbil. Mahdian is a regional Southeast Asian focused energy business, with hopes to expand into the global market. It has been working in Indonesia for three decades.
The funds will be used for a feasibility study to evaluate the development of a new LNG import terminal, as well as storage and shipping facilities on Asam Island.
The proposed terminal would import LNG which would then be piped to the Indonesian domestic market, but also act as a marine bunkering fuelled hub.
USTDA said it hoped to create export opportunities for US LNG suppliers.
"For decades USTDA has helped partners like Indonesia plan priority gas infrastructure, and our project will provide critical resources to Western Indonesia and explore expanded options for inter-island gas transportation," USTDA acting director Thomas Hardy said.
Last year Indonesia scrapped plans to build an LNG import terminal as it estimated domestic production would meet shortfalls previously anticipated in 2025.
In August, the energy and mines minister Ignasius Jonan told reporters on the sidelines of the Gas Indonesia conference in Jakarta that "Indonesia would never need to import gas."