JAKARTA - PT Perusahaan Gas Negara (Persero) Tbk (PGAS), also known as PGN, is eyeing China’s liquefied natural gas (LNG) market due to rising demand in the country.
According to PGN Business Strategy and Development Director Syahrial Mukhtar, currently China requires around 1,000 cargoes of LNG per year due to the Chinese government’s policy of encouraging the use of gas as a substitute to coal.
“That’s why the demand for gas [in China] continues to rise,” said Mr Mukhtar as quoted by Bisnis.com recently.
Considering the opportunity, PGN has signed a sales and purchase (S&P) agreement with China Petroleum & Chemical Corp, commonly known as Sinopec, for 2020. Per the agreement, PGN will supply six cargoes of LNG to Sinopec starting from January 2020 and continue delivery until March.
PGN’s LNG sales to China, said Mr Mukhtar, can potentially be extended, although that will require a negotiation with Sinopec in advance. In addition, PGN also hopes that the S&P agreement with Sinopec will mark a further partnership with the Chinese national energy company. (MS)