PGN, Pertamina International Shipping sign LNG pact
Perusahaan Gas Negara (PGN) and Pertamina International Shipping (PIS) have signed an initial agreement regarding the supply of LNG carriers and LNG bunkering facilities, their parent company Indonesian state-run Pertamina said on June 26.
Under the deal, PIS will provide an LNG carrier and supporting facilities, while PGN will harness its LNG trading activities to supply LNG, enabling PIS to convert its vessels to run on LNG.
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This collaboration has implications not only for business, but also for the Pertamina group's commitment to implement environmental, social, and governance to reduce carbon emissions, the company said.
"Synergy is needed because, in the future, PGN will play an important role in the energy transition in Indonesia, especially in green energy, which requires significant resources and cannot be done alone. In support of PIS, PGN will supply LNG and LNG bunkering facilities in operating eco-green vessels is in line with the implementation of the global IMO 2020 standard," president director of Pertamina, Nicke Widyawati, said.
Widyawati added that the virtual pipelines that will be developed in Indonesia with PIS's LNG vessel will generate a captive market so that PGN can develop its gas distribution business in all the islands.