PT Perusahaan Gas Negara (PGN), a unit of Indonesia’s Pertamina, has declared force majeure on its liquefied natural gas supply deal with a unit of Geneva-based energy and LNG trader, Gunvor.
PGN revealed this in a filling to the stock exchange on Tuesday saying it had submitted the force majeure notice to Gunvor Singapore on November 3.
“The company’s estimate of the force majeure period is no less than several months of year 2024,” PGN said.
PGN did not provide any additional information.
LNG Prime invited Gunvor to comment on the matter. A Gunvor spokesperson declined to comment.
The two firms entered into the LNG supply deal in June last year.
PGN and Gunvor said in a joint statement at the time they entered into a master sales and purchase agreement (MSPA) and confirmation notice (CN) for the supply of 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 is the first LNG supply deal between the two firms.
In August, Gunvor reported a lower net profit and LNG volumes in the first half of this year, but it did not provide details regarding LNG volumes.
This was also the case with 2020, 2021, and 2022.
According to the company’s website, Gunvor delivered 4 million tonnes in 2016, 7 million tonnes in 2017, 11 million tonnes in 2018, and 16 million tonnes in 2019.