PGN Sells 7 Cargo Of Liquid Natural Gas To China

Natural gas illustration (photo: between)

PT PGN Tbk (PGAS) has purchased liquefied natural gas (LNG) for the purpose of China's country.

PGN's first LNG shipment came from the supply Petronas - Bintulu which was sent to CNIC - China on February 9, 2024. Total LNG shipments amounted to 7 cargoes or the equivalent of 64 BBTUD.

"This maneuver is a realization of PGN's global business expansion and business diversification to enter the international LNG business, by having a global energy sales portfolio. LNG is important for PGN's supply chain and is expected to be the driver of revenue from the international LNG business in 2024," said PGN President Director Arief S. Handoko quoted Monday, January 12.

Arif explained that actually the LNG International business with the aim of this Chinese country has been explored since 2020-2021 with suppliers and buyers, until finally reaching a mutual agreement for the realization of LNG shipments this year. In the process, PGN also communicates intensively both with LNG suppliers and potential buyers. In addition, market intelligence is also carried out for marketing and penetration of LNG both regionally and globally.

"This collaboration provides benefits for PGN for the creation of important milestones in the global LNG business, thus giving PGN awareness and presence to global-scale LNG players. In addition, PGN has added networking to establish good relations with international players," continued Arif.

Arief emphasized that business calculations and GCG are carried out prudently so that PGN's efforts to enter the international LNG market have economic impacts for companies and the state. However, it also continues to provide priority for natural gas to fulfill domestic energy so that the economy and energy resilience are maintained.

Arf said, the diversification of the international LNG business in PGN was driven by LNG demand growth in several countries including China. The potential for the global market is quite attractive, considering that LNG has an advantage when compared to pipeline gas. LNG can be transported remotely and channeled to demand centers in a faster-relative time, and can be traded in the open market. PGN takes advantage of this advantage with the capability of LNG portfolio to become an international level LNG Player. Gradually, infrastructure is sought to be more reliable, as well as increase business communication both with suppliers and LNG buyers in the global market.

Milestone global LNG sales are part of PGN's long-term plan to maintain business growth. In the future, PGN will also try to increase the volume of international LNG trading through initiatives currently being explored, including the potential for diversification of other LNG businesses such as Gasing Up Cooling Down, revitalization and construction of new LNG storage tanks and LNG Bunkering which will be carried out by PGN and its subsidiaries.