Pertamina’s PGN pens domestic deal for Tangguh LNG supplies

PGN said on Friday the strategic partnership with BUMD aims to optimize the allocation of Tangguh LNG from PT Padoma Lirik Energy (PLE).

According to PGN, this collaboration involves utilizing about 20 MMSCFD of LNG, equivalent to two cargoes annually, from the Tangguh LNG facility.

The company did not provide further information.

In October 2023, BP shipped the first LNG cargo produced by the new third liquefaction train at the Tangguh LNG facility.

The start-up of Tangguh Train 3 added 3.8 million tonnes per annum (mtpa) of LNG production capacity to the existing two-train facility, bringing total plant capacity to 11.4 mtpa.

PGN said this new initiative aligns with its broader strategy to ensure reliable and diversified gas supply while adhering to Indonesia’s regulatory framework. It also supports government policies on gas allocation.

Moreover, the partnership supports PGN’s goal of addressing current pipeline gas supply constraints in key regions.

As domestic gas demand continues to rise, PGN is maintaining close coordination with stakeholders to identify optimal solutions for national energy resilience and to support energy self-sufficiency, the company said.

Last year, PGN also signed a deal to buy LNG from compatriot producer Donggi-Senoro LNG.

PGN operates the Lampung FSRU terminal and last year it resolved its dispute with Norwegian FSRU player Hoegh Eviover issues related to the FSRU charter.

The 2014-built 170,132-cbm FSRU serves a 20-year charter deal with PGN LNG, a unit of PGN, off the southeast coast of Sumatra in Indonesia.

The regasified LNG from the FSRU-based facility goes for power generation and industrial users in West Java.