TEMPO.CO, Jakarta - State-owned gas company PT Perusahaan Gas Negara Tbk (PGN) and Mubadala Energy South Andaman RSC Ltd. (Mubadala Energy), the Abu Dhabi-headquartered international energy company, have begun exploring the use of natural gas from the South Andaman Working Area (WK) in Aceh. The two entities signed a Memorandum of Understanding (MoU) on Wednesday, July 2, 2025, to study the potential for gas distribution and the development of gas pipeline infrastructure and liquefied natural gas (LNG).
Ratih Esti Prihartini, PGN Commercial Director, said that PGN and Mubadala Energy recognize opportunities for exploration cooperation in the South Andaman region. "Gas supply from Andaman can certainly support increased domestic energy security, aligning with the projected continuous increase in domestic natural gas needs," Ratih said in a written statement received by Tempo on Wednesday, July 2, 2025.
Previously, PGN and Mubadala Energy signed an MoU on October 22, 2024, to study the Arun Refinery facilities and regasification terminals. Both companies are targeting the use of these facilities to support upstream oil and gas activities. In this collaboration, PGN involves Pertagas and Perta Arun Gas as part of the PGN Group.
Ratih emphasized that PGN and its subsidiaries will assess the readiness of the infrastructure required to distribute natural gas from Andaman to potential customers. "The PGN Group prioritizes transparency regarding the data submitted for WK South Andaman area activities and adheres to good corporate governance (GCG)," she added.
Abdulla Bu Ali, President Director of Mubadala Energy South Andaman RSC Ltd., assessed that the potential for gas production in this area is substantial enough to meet the needs of various sectors. He stated that the supply from Andaman could serve as a primary source for PGN to meet demand across Sumatra to Java once the Duri-Dumai-Medan pipeline is constructed.
Abdulla also sees opportunities for developing gas in the form of LNG to cater to the needs across all PGN operational areas. "This agenda is an important step within the framework of comprehensive cooperation regarding the utilization of gas from WK South Andaman. Both commercially and infrastructurally, alignment needs to be ensured so that the benefits can be optimally felt by all stakeholders," he concluded.
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