Securing LNG Supply: PGN Signs Contract with Donggi-Senoro LNG

Jakarta – PT Perusahaan Gas Negara Tbk (PGN), as Pertamina's Gas Subholding, has secured an additional LNG supply from a domestic source managed by PT Donggi-Senoro LNG (DSLNG). PGN and DSLNG have agreed on a Master LNG Sale and Purchase Agreement (MSPA), further cemented by the signing of a Confirmation Memorandum for the procurement of one LNG cargo in September 2024. This cargo amounts to 135,000 m³, equivalent to 3,159,000 MMBTU.

This agreement will enhance the supply of regasified LNG for the regions of West Java, South Sumatra, and Central Sumatra. With a contract duration of five years, it aims to strengthen energy security and promote clean, environmentally friendly energy for business and investment, particularly in the industrial and commercial sectors.

“The addition of LNG supply is a continuous effort by PGN to meet demand and support the industrial and commercial sectors' investment climate. With growing LNG demand, PGN has been coordinating with field operators to explore opportunities for additional LNG supplies from various sources,” said Rosa Permata Sari, PGN’s Director of Strategy and Business Development, on August 12, 2024.

“With LNG demand growth welcomed positively by industrial and commercial sectors, now reaching approximately 50 BBTUD, PGN remains committed to ensuring a reliable LNG supply to support business continuity,” Rosa added.

Beyond meeting existing customer needs, the increased LNG supply also creates opportunities to penetrate new markets. LNG utilization is currently the most feasible solution amidst the challenges of natural production decline in gas fields.

Rosa further stated that LNG procurement is expected to contribute to PGN's target trading volume for 2024, which stands at 954 BBTUD.

“PGN possesses the capability to manage and distribute LNG efficiently. Beyond supporting the national economy, LNG is a clean and sustainable energy source, aligning with Indonesia’s net zero emissions target by 2060,” Rosa concluded.

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