PT Pertamina, the energy group owned by the Indonesian government, has signed ten new gas sales agreements with several local entities. Among the signatories are PT Perusahaan Gas Negara (PGN), the country’s main gas distributor, and PT Perusahaan Listrik Negara (PLN), the national electricity provider. The announcement was made during a conference hosted by the Indonesian Petroleum Association.
The agreements cover multiple regions across the country and aim to support local industrial and energy needs. One of the contracts includes the delivery of 11 billion British thermal units per day (BBTUD) of gas to PGN’s industrial clients in North Sumatra province.
Deliveries planned for electricity generation
Pertamina, through one of its subsidiaries, has also committed to supplying 36 BBTUD to PLN for electricity generation. This gas will be allocated to power plants in Tanjung Batu and Bontang. These volumes are considered strategic for securing energy supply in these areas, where demand continues to rise.
PLN, a key actor in the national energy infrastructure, is increasingly relying on natural gas to diversify its energy sources while reducing dependence on coal. The supply guaranteed by Pertamina supports this objective while strengthening ties among public sector energy companies.
Strengthening domestic distribution networks
These agreements come in a context of efforts to reinforce Indonesia’s domestic natural gas supply chain. Pertamina is pursuing a strategy focused on the utilisation of national resources to support industrial growth and ensure more stable distribution to developing regions.
The company specified that these agreements were concluded under a multilateral contractual framework involving several subsidiaries from both PGN and PLN. Implementation will be progressive, depending on transport capacity and operational schedules of the concerned units.
Regional momentum central to energy strategy
These contracts reflect the Indonesian authorities’ intention to rely on local energy resources to meet the growing needs of industry and infrastructure. They also reinforce inter-company cooperation within the public sector, in a vertically integrated structure centred around Pertamina.
The event where the agreements were signed, organised by the Indonesian Petroleum Association, brought together several industry leaders. It highlighted operational priorities for the coming years, with an emphasis on securing energy supply in regions far from the country’s main economic centres.
