Indonesia’s state-owned PT Pertamina (Presser) expressed strong interest in participating in the Philippine liquefied natural gas (LNG) industry supply chain.
The company shared its plans to initially focus on midstream operations, which include the transportation and storage of LNG, before potentially expanding into upstream (exploration and production) and downstream (distribution and sales) activities to support the country’s growing energy demand.
Officials from PT Pertamina and its subsidiaries, PT Perusahaan Gas Negara (PGN) and PT Pertamina Petra Niaga (PPN), attended an investment briefing hosted by the Board of Investments on Nov. 6, 2024.
The BOI provided insights into the current Philippine investment landscape and highlighted opportunities within the LNG sector.
The visit of the Indonesian officials was endorsed by the Philippine Trade and Investment Center in Jakarta, headed by commercial attaché Jeremiah Reyes.
Meanwhile, state-run Philippine National Oil Co. (PNOC) and Pertamina signed a memorandum of understanding (MOU) on Nov. 7, 2024 toward strengthening energy capabilities between the Philippines and Indonesia.
The alliance aims to advance collaborative development in LNG and any other possible cooperation and collaboration in energy sectors that may be mutually agreed by both companies, marking both countries’ commitment to energy security, economic growth, and a low-carbon future in the region.
“We must find every opportunity to collaborate–connectivity and complementation of strengths. We believe LNG can give us the energy security and make us more competitive. Pertamina is a huge corporation and one of the drivers of the Indonesian economy. With the extensive operations they have, we are excited to leverage the expertise of Pertamina on LNG,” PNOC president and chief executive Oliver Butalid said in a statement.
As part of the partnership, PNOC and Pertamina will explore cooperation opportunities in the LNG market in the Philippines including the establishing of LNG and gas infrastructure to meet rising energy demands in both countries.
“We’ve recently taken a significant step forward by signing an MOU with Pertamina, Indonesia’s state-owned energy company. Through this partnership, Pertamina will deliver LNG in ISO tanks from its facility in Tarakan, East Kalimantan—a short distance away by barge. Next year, we expect the LGU of Tawi Tawi to secure the necessary land and permits, while also attracting investors to create the country’s first Self-Generating Industrial Park (SGIP),” Butalid said during the Norway-Philippines LNG Summit on Monday.
“On our end, PNOC shall focus on securing the modular LNG generators and ensuring a reliable LNG supply to this SGIP. Our modular LNG generators can provide flexible, reliable power for industries, while our partnerships with international LNG suppliers can help ensure steady delivery,” he said.
The MOU also emphasizes knowledge exchange and joint market intelligence efforts between PNOC and Pertamina.
Both companies will share information on topics such as LNG Supply Chain including commodity, sea transportation, regasification terminal, energy demand and supply trends in both countries.
PNOC and Pertamina will also explore potential commercialization opportunities in hydrocarbon products, biofuel, and sustainable aviation fuel production.
The collaboration also aims to see the opportunities for potential logistics and shipping cooperation to streamline the movement of energy products and materials.
This is intended to improve efficiency, reduce costs, and strengthen regional connectivity in the energy sector.
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