A unit of Switzerland’s renewable energy producer Axpo is looking to become a user of Pertamina’s Arun LNG hub in Indonesia as part of plans to expand its LNG business in Asia.
In that regard, Axpo Singapore has signed a preliminary heads of agreement with Pertamina’s unit Perta Arun Gas, the operator of the Arun LNG plant in Lhokseumawe, according to a statement by Axpo.
Under the cooperation, Axpo Singapore would become an LNG hub tank user to store liquefied natural gas, the statement said.
Perta Arun Gas manages five LNG tanks in Lhokseumawe, near the vital Strait of Malacca international shipping lane, and aims to become a leading regasification and LNG hub, Axpo said.
The firm did not provide any additional information.
Back in 2020, Axpo opened a branch in Singapore and hired Sophie Ducoloner to lead the new unit as the company looks to expand its trading activities in Asia’s growing LNG market.
On the other side, Axpo is not the only international firm interested in Pertamina’s LNG hub.
In August last year, French energy giant TotalEnergies signed a terminal use agreement with Perta Arun Gas to use two storage tanks at the Arun LNG hub.
The Arun LNG plant has previously exported LNG for about 36 years. However, Pertamina converted the facility in 2015 to act as a regasification plant and an LNG hub.
Pertamina previously said it utilizes four LNG tanks each with a capacity of 127,000 cbm for the reloading business.
The firm said in a separate statement issued on April 19 that the fifth tank is not operating but Perta Arun Gas would revitalize the tank for Axpo.
Under the agreement, Axpo would use the fifth tank for a period of five years, according to Pertamina.
(Article updated on April 21 to add a statement by Pertamina.)