Indonesian PGN, Sinopec Sign LNG Deal

Indonesian gas transportation and marketing firm, Perusahaan Gas Negara (PGN), signed an agreement in Beijing to supply LNG to Chinese state-run Sinopec in 2020, it said November 11 without offering any details.

Reuters in a report said that PGN, a unit of state-run Pertamina, will supply at least six cargoes of LNG next year with supplies expected to start in January.

PGN’s director for strategy and development, Syahrial Muktar, said China is a country with great potential with a variety of business opportunities that can be explored.

"We are very enthusiastic to build cooperation between Sinopec and PGN. Sinopec is one of the biggest energy companies in China. We believe that our goal to sign an LNG purchase cooperation agreement is the beginning of what we can collaborate going forward,” Muktar said.

Sinopec operates three LNG receiving terminals in China - Beihai LNG receiving terminal in Guangxi, Tianjin terminal in Tianjin city and Qingdao in Shandong province.