PGN And PPT Energy Trading For The Acceleration Of LNG Commercialization In The Energy Transition Era Towards NZE 2060

Photo: Doc. PGN

JAKARTA - In the context of developing the Liquefied Natural Gas (LNG) business, as part of the transitional energy to new and renewable energy (EBT), PT PGN Tbk as Pertamina Gas Subholding is exploring cooperation with energy joint venture companies between Japan and Indonesia, namely, PPT Energy Trading Co Ltd. The agreement was made with the signing of a Memorandum of Understanding in Jakarta, Thursday, October 20.

The agreement was signed by PGN's Director of Strategy and Business Development Heru Setiawan and PPT Energy Trading President Director Co Ltd. Agus Witjaksono.

Through this collaboration, PGN and PPTET will develop LNG, New Renewable Energy and Transitional Energy businesses. With the PPTET experience which has been going on for more than 50 years, PGN hopes that this synergy can run well in the future, so that it can support the needs and use of LNG as the transitional energy to Net Zero Emission (NZE) 2060.

M. Haryo Yunianto, CEO of Pertamina Gas Subholding, PT PGN Tbk, who also witnessed the signing in his speech stated that PGN has a very large opportunity to enter the international natural gas market through the use of non-pipeline modes, namely LNG.

The world's LNG needs, especially the Asia Pacific region in 2022, reach 273 mmtpa and will continue to grow 2.8 percent per year until 2050 of 585 mmtpa. Moreover, geopolitical conditions and efforts towards clean energy globally make LNG's business value even more attractive.

PGN's LNG opportunity to enter the international market is very wide open, especially in terms of natural gas reserves, and LNG demand in the international market. So to meet these energy needs, the development of non-pipeline modes (beyond pipelines) for LNG distribution is mandatory. For this reason, collaboration with various parties is very important to do," he said.

Today's Memorandum of Understanding will be the basis for exploring business potential in the context of business development and natural gas trading, LNG, as the transition energy towards new and renewable energy. As well as increasing LNG marketing opportunities for the portfolio of PT Pertamina (Persero) which will be diverted to PGN, LNG trading from and/or to other parties so that it can play a role and provide multiplier effects for the national economy and society.

Haryo hopes that this collaboration with PPET can also provide opportunities for PGN officers to benchmark and receive transfer knowledge related to the international market LNG trading business, and to make it happen PGN needs strategic partners to accelerate penetration and commercialization of LNG's business.