State-owned gas company PT PGN, the gas sub-holding company of state-owned energy company PT PERTAMINA, signed a memorandum of understanding (MoU) with PT Likuid Nusantara Gas on Thursday, August 8, 2024, to cooperate in the liquefied natural gas (LNG) sector in East Java.
The MoU was signed by Rosa Permata Sari as Strategy and Business Development Director of PT PGN and Wira Rahardja as CEO of PT Likuid Nusantara Gas, part of PT LNG.
In the MoU, PGN and PT LNG agree to cooperate in the purchase and sale of LNG to meet domestic natural gas demand. To support the penetration of the domestic market, both companies will then jointly conduct studies on the development of natural gas infrastructure or LNG terminal in Pasuruan, East Java, and other potentials related to operational activities and maintenance of LNG facilities and infrastructure.
PT Likuid Nusantara Gas is an integrated energy company with experience in natural gas. In September 2023, PT LNG secured a potential domestic gas supply to be marketed under the LNG model.
“We hope that the current cooperation potential signed in the form of a Memorandum of Understanding can soon be implemented in the concrete phase. We see the synergy between what PT LNG dreams of and what PGN and the business ecosystem are doing today,” said Rosa Permata Sari.
“Today, the demand for natural gas on the island of Java is high. However, gas supplies from certain regions need transportation options, not only through gas pipelines but also through other means of transportation such as CNG and LNG,” she added.
That’s why, says Rosa, the current growth in retail is significant. “In terms of pricing, I think the market can achieve LNG penetration. We will ensure that we provide reliable natural gas energy that is accepted by all parts of society.”
Wira Rahardja said that energy subsidies or dependence on liquefied natural gas imports were so high that business, government and state-owned enterprises could work together to reduce the government burden.
“We see cooperation with PGN as part of our strategy, which we cannot deny. With the support of the PGN Group and the government, we believe that the LNG project can contribute to the government’s efforts to reduce LPG burden in the form of subsidies for LPG imports,” he said.
