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PGN joins with Chinese company to develop LNG business in China
The Chinese company will provide logistical solutions for the plan over the next year.
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An engineer with state gas distributor PT PGN checks on the gas network at one of the company's mobile refueling units in Bandung, West Java, on Dec. 5, 2019. (Antara/Raisan Al Farisi)
P
ublicly listed gas company PGN will partner with a Chinese company to bolster its liquefied natural gas (LNG) development in China, the firm's executive has said.
PGN strategy and business development director Syahrial Mukthar said the firm had signed a memorandum of understanding (MoU) on Friday last week with engineering, procurement and construction (EPC) and manufacturing company WnD (Liaoning) Heavy Industry Co.
The Chinese company will provide logistical solutions for the plan over the next year.
"This partnership will open opportunities to work together in developing the small-scale LNG industry in China as well as in the region," Syahrial said on Tuesday, as quoted by kompas.com.
He added that there was also a possibility for the gas company to cooperate with other companies as China had great potential and various business opportunities.
Read also: PGN mulls global bonds issuance to fund capital expenditure
PNG's recent move is expected to support its vision of becoming a player in the international LNG market, as global demand for LNG has steadily increased thanks to a hike in energy consumption in recent years.
According to PGN’s estimation, China’s potential demand for gas will increase by over 15 percent annually. As such, PGN's expansion into China is the right move to add to the firm's portfolio, Syahrial said.
The state gas company also aims to run six cargos for the global markets, including one or two cargos to Japan this year. The firm saw potential for up to nine cargos to Myanmar by 2021 and 18 cargos for the Philippines by 2023, Syahrial went on to say.
"These programs aim to give benefits [to receiving countries] through our strong capacity for LNG infrastructure," he said. (mai)
