Pertamina’s PGN inks LNG cooperation deal with SK E&S

PT Perusahaan Gas Negara (PGN), a unit of Indonesia’s Pertamina, has signed a deal with South Korea’s SK E&S to cooperate in LNG, hydrogen, and carbon capture and storage.

In that regard, PGN, the operator of two FSRU-based LNG import terminals, and the unit of South Korean conglomerate SK Group signed a memorandum of understanding on February 22, according to a Pertamina statement.

Haryo Yunianto, CEO of PGN, said the two companies would conduct a joint study regarding a potential collaboration in hydrogen and CCS development in Indonesia.

“SK has experiences and capability in the field of hydrogen and CCS development. With this MoU, it is hoped that PGN and SK can exchange information and communicate efficiently,” said Yunianto.

The firms would also explore opportunities to develop gas business in Indonesia and Korea, which would also include conducting LNG trading, according to the statement.

In addition, the companies are considering opportunities for cooperation in LNG infrastructure, terminal utilization, LNG sales, purchase business activities, and gas or LNG business development in Korea, it said.

“The MOU aims to support the preparation of a more comprehensive cooperation realization, both for discussion and implementation related to investment and utilization of the products or services of each party,” said Yunianto.

In September last year, SK E&S revealed ambitious goals for its LNG and hydrogen business by 2025, including plans to apply CCS technology to the entire value chain.

The firm aims to produce 280,000 tons of hydrogen, 7GW of renewables, and 10 million tons of “green” LNG by 2025.

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