INDONESIAN state-owned energy company PT Pertamina (Persero) is considering liquefied natural gas (LNG) projects in the Philippines, the Board of Investments (BoI) said.
In a statement on Monday, the investment promotion agency said Pertamina will initially focus on the transportation and storage of LNG.
“The company has shared its plans to initially focus on midstream operations before potentially expanding into upstream (exploration and production) and downstream (distribution and sales) activities,” the BoI said.
In a separate statement, the Philippine National Oil Co. (PNOC) said that it signed a memorandum of understanding (MoU) with Pertamina on Nov. 7.
“This alliance aims to advance collaborative development in LNG and any other possible cooperation and collaboration in energy sectors that may be mutually agreed by both companies, marking both countries’ commitment to energy economic growth and a low-carbon future in the region,” the PNOC said.
Under the partnership, PNOC and Pertamina will explore LNG opportunities, including the establishment of LNG infrastructure to meet rising energy demand in both countries.
“We must find every opportunity to collaborate … We believe LNG can give us the energy security and make us more competitive,” Oliver B. Butalid, president and chief executive officer of PNOC, said.
“Pertamina is a huge corporation and one of the drivers of the Indonesian economy. With the extensive operations they have, we are excited to leverage the expertise of Pertamina in LNG,” he noted.
The MoU also provides for knowledge exchange and market intelligence collaboration in commodities, sea transportation, regasification terminals, energy demand, and supply trends.
“PNOC and Pertamina will explore potential commercialization opportunities in hydrocarbon products, biofuel, and sustainable aviation fuel production,” the PNOC said.
Under the partnership, both parties will conduct studies aimed at exploring ways to improve efficiency, reduce costs, and strengthen regional connectivity in the energy sector. — Justine Irish D. Tabile
