Going Global, PGN Signs International LNG Trading Deal

Jakarta – Pertamina’s Subholding Gas PT PGN Tbk has launched its international LNG trading business, with its first LNG cargo shipment to China on February 9, 2024. This marks a significant step towards PGN’s global business aspirations.

“This move represents the realization of PGN’s global business expansion and diversification into the international LNG market, with a portfolio that supports global energy sales. LNG is crucial for PGN’s supply chain and is expected to be a key revenue driver for PGN’s international LNG business in 2024,” said PGN’s CEO, Arief S. Handoko, on February 11, 2024.

The international LNG business to China has been in the works since 2020-2021, through discussions with suppliers and buyers, culminating in the successful agreement for LNG shipments this year. PGN has maintained intensive communication with LNG suppliers and potential buyers during this process, and has also conducted market intelligence to support LNG marketing and penetration at both regional and global levels.

This partnership provides PGN with an opportunity to create a significant milestone in the global LNG business, enhancing its visibility and presence among global LNG players. It also expands PGN’s network, fostering relationships with international players in the energy sector.

Arief emphasized that PGN conducts business calculations and corporate governance with caution, ensuring that the entry into the international LNG market brings economic benefits both for the company and the country, while still prioritizing domestic natural gas supply to maintain energy security and economic stability.

PGN’s international LNG business diversification is driven by the growing LNG demand in several countries, including China. The global market potential is promising, as LNG offers advantages over pipeline gas. LNG can be transported over long distances and delivered to demand centers more quickly, and it can be traded on open markets. PGN is leveraging this advantage, using its LNG portfolio capabilities to position itself as a global LNG player. PGN is gradually enhancing its infrastructure to become more reliable, and increasing business communication with global LNG suppliers and buyers.

This milestone in global LNG sales is part of PGN’s long-term strategy to sustain business growth. Going forward, PGN aims to increase its international LNG trade volume through current initiatives, including the potential diversification of LNG businesses such as Gasing Up Cooling Down, revitalization, and the construction of new LNG storage tanks, as well as LNG bunkering, which will be undertaken by PGN and its subsidiaries.

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