Indonesia, China cooperate in LNG business

Publicly listed gas company PGN in Indonesia will partner with a Chinese firm to boost its liquefied natural gas (LNG) development in China, PNG strategy and business development director Syahrial Mukthar said on February 19.

20, Feb. 2020

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JAKARTA, VNA - Publicly listed gas company PGN in Indonesia will partner with a Chinese firm to boost its liquefied natural gas (LNG) development in China, PNG strategy and business development director Syahrial Mukthar said on February 19.

PGN signed a memorandum of understanding (MoU) last week with engineering, procurement and construction (EPC) and manufacturing company WnD Heavy Industry Co.

Accordingly, the Chinese company will provide logistical solutions in 2021.

The partnership will open opportunities to work together in developing the small-scale LNG industry in China as well as in the region, Syahrial said, adding there was also a possibility for the gas company to cooperate with other firms as China had great potential and various business opportunities.

PGN’s recent move reveals its vision to become a player in the international LNG market in the context that 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. - VNA