Indonesia’s state-owned oil and natural gas corporation, PT Pertamina (Persero), has expressed interest in participating in the country’s liquefied natural gas (LNG) industry supply chain, the the Philippine National Oil Company (PNOC) said in a statement on Monday.
Under a memorandum of agreement signed on November 7, PNOC and PT Pertamina (Persero) will explore cooperation opportunities in the LNG market in the Philippines including the establishment of LNG and gas infrastructure to meet rising energy demands in both countries.
The parties agreed to conduct knowledge exchange and joint market intelligence efforts on topics such as LNG supply chain including commodity, sea transportation, regasification terminal, energy demand and supply trends in both countries.
facility by AG&P International Pte. Ltd. and Linseed Field Power Corp. in Batangas Bay has started supplying a power plant in Batangas province while the other terminal owned by FGEN LNG Corp. is set to receive its first LNG cargo later this year, according to the Department of Energy.
In a separate statement on Monday, the Board of Investments (BOI) said officials of PT Pertamina and its subsidiaries, PT Perusahaan Gas Negara and PT Pertamina Petra Niaga attended an investment briefing on November 6 where Pertamina has shared its plans to initially focus on midstream operations, which include the transportation and storage of LNG.
The BOI added the company will then potentially expand into upstream such as exploration and production and downstream like distribution and sales activities to support the country’s growing energy demand.
In addition to LNG initiatives covered by the MOU, PNOC and Pertamina will explore potential commercialization opportunities in hydrocarbon products, biofuel, and sustainable aviation fuel production.
Other opportunities for collaboration are in logistics and shipping, streamlining the movement of energy products and materials. This study is intended to improve efficiency, reduce costs, and strengthen regional connectivity in the energy sector. The partnership will also open the opportunities to focus on renewable energy advancements through joint studies that support environmental goals in both nations.
The BOI has registered eight LNG projects with a combined cos of P238 billion starting 2012.
