Exploring Gas Potential in East Java, PGN and Likuid Nusantara Gas Sign MOU for LNG Cooperation

Jakarta, August 8, 2024 – PT Perusahaan Gas Negara Tbk (PGN), a subsidiary of PT Pertamina (Persero), has signed a Memorandum of Understanding (MoU) with PT Likuid Nusantara Gas (“PT LNG”) to explore potential collaborations in the Liquefied Natural Gas (LNG) sector in East Java. The signing ceremony was done by Rosa Permata Sari, Director of Strategy and Business Development of PGN, and Wira Rahardja, Director of PT Likuid Nusantara Gas.

Under the MoU, PGN and PT LNG have agreed to explore various areas of cooperation, including PGN’s ongoing LNG trading activities to meet domestic gas demand. To support domestic market penetration, both companies will collectively study the natural gas infrastructure or LNG terminal development in Pasuruan, East Java, as well as other potential opportunities related to the operation and maintenance of natural gas or LNG facilities and infrastructure.

PT LNG is an integrated energy company with experience in the natural gas sector. In September 2023, PT LNG received a potential domestic gas supply allocation that will be commercialized through LNG.

“We hope the potential for cooperation signed today in the MoU will soon be realized in more concrete steps. We see alignment between PT LNG’s aspirations and those of PGN and the current business ecosystem. There is currently a high demand for natural gas on Java Island. However, meeting certain areas’ gas needs still requires various modes of transportation, not only through pipelines but also through other modes, such as CNG and LNG,” said Rosa Permata Sari, Director of Strategy and Business Development of PGN.

Furthermore, Rosa stated that retail growth has been rapid. “Regarding pricing, the market seems ready to accept LNG penetration. We have seen the market’s ability to absorb LNG since last May. It means that the LNG ambiance and ecosystem have been formed,” she said.

Rosa emphasized the importance of the reliability of natural gas and its infrastructure in this collaboration. Therefore, it is hoped that the joint efforts of PGN and PT LNG can provide reliable and acceptable natural gas energy to all sectors of society.

According to Wira Rahardja, Director of PT LNG, energy subsidies or import dependence on LPG are large. Therefore, in this case, the state-owned enterprises, the government, and private companies can cooperate to reduce the government’s burden. “We see that cooperation with PGN is a strategy that cannot be ignored. With the support of the PGN Group and the government, we are confident that this LNG project can be one of the contributions to the government and realize our dream of reducing the burden of LPG, especially from the standpoint of LPG import subsidies,” Wira said.

Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, stated that Pertamina is encouraging PGN as a Gas subsidiary to expand cooperation to strengthen Pertamina’s gas business. “The potential of domestic natural gas is quite large and environmentally friendly, making it an alternative energy source in the transition era,” Fadjar said.

PGN continuously provides a reliable natural gas supply to its users in various regions of Indonesia. With this initiative, it is hoped the optimization of domestic natural gas production in several locations and isolated markets will be accessible to natural gas.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina’s business lines and operations.**