Perusahaan Gas Negara (PGN), a subsidiary of Indonesian state-owned oil and natural gas company Pertamina, has issued two documents related to the sale of liquefied natural gas (LNG) with Indonesian company Donggi-Senoro LNG (DS LNG).

The two companies signed a Master LNG Purchase and Sale Agreement (MSPA) and a Confirmation Memorandum (CM) for the plan to purchase an LNG cargo in September 2024. The volume of the shipment will be 135,000 m3 at approximately 5% operating tolerance, which corresponds to 3,159,000 MMBTU at approximately 5% operating tolerance.

Although the MSPA expires on December 31, 2029, the two players have the option to extend it or terminate it early if they agree to do so. The value of the contracts was not disclosed.

DS LNG operates an LNG plant in Banggai Regency in the Central Sulawesi Province of Indonesia. The plant consists of a liquefaction plant and associated utilities, a jetty for supplies and equipment, an LNG storage tank and a condensate tank, coupled with an LNG loading jetty and associated administrative facilities. The plant, which has the capacity to produce two million tonnes of LNG per year, began operations in 2015.

This comes less than two months after PGN signed a binding Gas Sales Agreement (GSA) to Conrad Asia Energy for the sale and purchase of the domestic gas share from the Mako field offshore Indonesia, seen as a major step towards the commercialisation of the field, which is considered the largest undeveloped gas field in the West Natuna Sea.