Japan’s Osaka Gas taps Indonesian LNG market with state-run Pertamina
JAKARTA, NNA – Osaka Gas Co. is working with state-run refinery Pertamina to expand operations in Indonesia, aiming for annual sales of 10 billion yen ($88.8 million) in 10 years.
The Japanese company has set up PT Osaka Gas Indonesia, capitalized at 10 billion rupiah ($660,000), and has signed a natural gas marketing agreement with Pertamina subsidiary PT. Pertagas Niaga.
“Osaka Gas aims to contribute to energy conservation and environmental footprint reduction in the country by promoting efficient energy use and fuel switching to natural gas,” the company said in a statement.
It said it will also help customers finance the introduction of natural gas to their plants.
Japanese utilities are seeking more profitable markets overseas as they face tough competition at home with a shrinking population and a deregulated retail energy market.
Indonesia is the third country in Southeast Asia after Singapore and Thailand where Osaka Gas is developing an energy business.
The Indonesian economy has been recovering gradually, maintaining 5 percent GDP growth in recent years.
Osaka Gas opened a representative office in Jakarta in October 2016.