Perusahaan Gas Negara (PGN), a subsidiary of Indonesia’s state-owned oil and natural gas company Pertamina, has penned two documents related to the sale of liquefied natural gas (LNG) with Indonesian firm Donggi-Senoro LNG (DS LNG).
The two firms signed a master LNG sale and purchase agreement (MSPA) and a confirmation memorandum (CM) for the plan to purchase one LNG cargo in September 2024. The volume of the shipment will be 135,000 m3 with around 5% of operational tolerance, equivalent to 3,159,000 MMBTU with around 5 % of operational tolerance.
While the MSPA is set to expire on December 31, 2029, the two players have the option to extend or terminate it earlier if they so agree. The value of the contracts has not been disclosed.
DS LNG operates an LNG plant in Banggai Regency, in Indonesia’s Central Sulawesi Province. The plant comprises one liquefaction train and supporting utilities, a jetty for supplies and equipment, an LNG storage tank, and a condensate tank, coupled with an LNG loading jetty and supporting administrative facilities. The facility, which can produce two million tons of LNG per year, started its operation in 2015.
This comes less than two months after PGN signed a binding gas sales agreement (GSA) for the sale and purchase of the domestic portion of gas from the Mako field off the coast of Indonesia to Conrad Asia Energy. This is seen as an important step in the commercialization of the field, said to be the largest undeveloped gas field in the West Natuna Sea.