PT PGN Tbk as Pertamina Subholding Gas (PGN), which is committed to immediately realizing the potential of its natural gas and liquefied natural gas (LNG) trading in the international market, has established a collaborative partnership with Gunvor Singapore Pte. Ltd. (Gunvor), under which PGN and Gunvor will carry out the sales and purchase of LNG in international markets and expand cooperation in other businesses.
Specifically, PGN has entered into a Master Sales and Purchase Agreement (MSPA) and Confirmation Notice (CN) with Gunvor to supply LNG. The LNG supplies from PGN will complement Gunvor’s LNG portfolio, which is the largest amongst independent trading companies.
“This collaboration is part of Pertamina’s strategy to monetise its LNG portfolio, and our companies’ cooperation holds considerable potential for other areas of collaboration. We already look forward to opening up other business opportunities,” said CEO of Pertamina Subholding Gas PT PGN Tbk M. Haryo Yunianto.
Pertamina as the Oil and Gas Holding will support the supply of LNG from Pertamina’s portfolio for PGN’s business into the international market.
PGN’s Director of Strategy and Business Development Heru Setiawan is very enthusiastic about this collaboration, given that Gunvor is one of the largest global commodity trading companies in the world. The synergy with Gunvor opens up opportunities to pursue LNG business in both emerging and developed LNG markets, building on the traditional destinations to which Pertamina has access.
“Partnering with Gunvor enables us to enter new markets where we previously had limited access. This collaboration is unique, and has the potential to become a solution in providing energy for regional and even other international destinations,” said Heru.
“We are pleased to enter into our first LNG transaction with PGN, which will come in addition to our existing relationship with the Pertamina Group. We look forward to further cooperation with PGN to enable competitive and reliable LNG deliveries to the global market. This transaction will establish a new chapter between our companies and enable wider cooperation worldwide,” said Ksenia Alleyne, Co-Head of LNG Trading for Gunvor.
While PGN’s business portfolio is dominant in Indonesia, to enter international market, PGN requires strategic partners to accelerate penetration and commercialization. PGN and Pertamina Group continue to optimize their roles so that PGN’s business development in the LNG trading international sector can be massively developed.
Gunvor is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy from where it is sourced and stored to where it is demanded most. Gunvor has strategic investments in industrial infrastructure—refineries, pipelines, storage and terminals—that complement its core trading activity and generate sustainable value across the global supply chain for customers. The company, which in 2021 generated US $135 billion in revenue on 240 million MT of energy commodity volumes, is the leading independent trader of LNG worldwide.