Indonesia's Pertamina to transfer LNG trade business

Indonesian state energy company PT Pertamina aims to transfer its foreign gas trade business to PT Perusahaan Gas Negara “as soon as possible”, Pertamina director Basuki Trikora Putra said.

The role of PGN, which became Pertamina’s gas subholding unit last year, so far has been focused on the gas utility business.

PGN earlier this month signed an agreement to sell liquefied natural gas (LNG) to China’s Sinopec next year.

 Putra said the trade business is currently in transition from Pertamina to PGN and the two companies are working together to manage international transactions.

Syahrial Mukhtar, a director at PGN, told reporters on Tuesday that the company will seek more LNG buyers in China, including more transactions with Sinopec. PGN hopes to secure a deal by the end of the year with a Chinese buyer, he said without sharing further details.

Pertamina and PGN are looking for buyers for LNG from Pertamina’s Bontang plant to replace contracts that will expire next year, Mukhtar said. (Reporting by Wilda Asmarini Writing by Fransiska Nangoy, Editing by Louise Heavens)

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