Indonesia’s PGN inks LNG supply deal with China’s Sinopec

Indonesian gas utility company PT Perusahaan Gas Negara (PGN), a unit of state-owned Pertamina, has signed a deal to supply LNG to China’s Sinopec in 2020. 

The company said in its statement that it will provide the volumes from Pertamina’s portfolio without disclosing any specific information on the actual volumes to be delivered under the contract.

Syahrial Muktar, PGN’s director of strategy and business development, said the company is looking to develop the gas and LNG infrastructure along the value chain.

He added that the deal with Sinopec is a cornerstone for the expansion of collaboration in the future. PGN aims to further explore the potential of LNG sales and the development of LNG infrastructure, from terminals, small-scale, LNG bunkering and so on.

In terms of opportunities in China, Syahrial added that based on energy needs and economic growth China is increasingly turning towards LNG imports which opens up a variety of business opportunities to be explored.