PGN, Likuid Nusantara Gas to develop LNG infrastructure in East Java

PGN, a subsidiary of Indonesia's state-owned oil and gas company Pertamina, has signed a memorandum of understanding (MoU) with energy firm Likuid Nusantara Gas (LNG) to explore the development of LNG infrastructure in East Java, Pertamina announced on August 8.

The MoU outlines the areas of collaboration between PGN and LNG, focusing on the sale and purchase of LNG, a key activity for PGN as it strives to meet the country’s growing natural gas demands. To enhance domestic market penetration, the MoU includes plans for a joint study on developing natural gas infrastructure, such as LNG terminals in Pasuruan, East Java. The cooperation will also explore other opportunities related to the operation and maintenance of natural gas or LNG facilities and infrastructure.

"Currently, there is a significant demand for natural gas in Java, but supplying gas to certain areas still requires a variety of transportation modes. In addition to piped gas, other methods such as CNG and LNG are also necessary," said Rosa Permata Sari, PGN's director of strategy and business development.

In September 2023, LNG secured a potential allocation of domestic gas supply, which is intended to be commercialized through LNG channels.