PT Perusahaan Gas Negara (PGN), a unit of Indonesia’s Pertamina, has entered into a liquefied natural gas deal with a unit of Geneva-based energy and LNG trader, Gunvor.
Under the deal, PGN and Gunvor Singapore will carry out the sales and purchase of LNG in international markets and expand cooperation in other businesses, according to a joint statement on Thursday.
Specifically, PGN has entered into a master sales and surchase agreement (MSPA) and confirmation notice (CN) with Gunvor to supply LNG.
The LNG supplies from PGN would complement Gunvor’s LNG portfolio, which is the largest amongst independent trading companies, the statement said.
PGN and Gunvor did not reveal additional details regarding the supply.
“This collaboration is part of Pertamina’s strategy to monetize its LNG portfolio, and our companies’ cooperation holds considerable potential for other areas of collaboration. We already look forward to opening up other business opportunities,” M. Haryo Yunianto, CEO of PGN said in the statement.
Parent Pertamina will support the supply of LNG from the company’s portfolio for PGN’s business into the international market, the statement said.
“The synergy with Gunvor opens up opportunities to pursue LNG business in both emerging and developed LNG markets, building on the traditional destinations to which Pertamina has access,” PGN’s director of strategy and business development, Heru Setiawan, said.
Ksenia Alleyne, Gunvor’s co-head of LNG Trading welcomed the company’s first LNG transaction with PGN, which would come in addition to the company’s existing relationship with Pertamina.
“We look forward to further cooperation with PGN to enable competitive and reliable LNG deliveries to the global market,” Alleyne said.