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Manila Bulletin devider Business devider PNOC, Pertamina partner on LNG infrastructure, supply chain

PNOC, Pertamina partner on LNG infrastructure, supply chain

Published Nov 11, 2024 11:34 pm

State-run Philippine National Oil Company (PNOC) has signed a deal with Indonesian oil and natural gas firm PT Pertamina to collaborate on liquefied natural gas (LNG) partnerships and other initiatives in the energy sector. 

During the Norway-Philippines LNG Summit 2024, Oliver Butalid, PNOC president and chief executive officer, discussed the partnership's goal of exploring the LNG market by establishing the necessary infrastructure to meet the increasing energy demands in both the Philippines and Indonesia.

“PNOC is committed to facilitating LNG delivery logistics, working with ASEAN partners like Pertamina and Petronas. We have recently made significant progress by signing a memorandum of understanding (MOU) with Pertamina, Indonesia's state-owned energy company. Through this partnership, Pertamina will transport LNG in ISO tanks from its facility in Tarakan, East Kalimantan, which is located a short distance away by barge,” he stated.

Both companies will also exchange information about the LNG supply chain, which includes commodities, sea transportation, regasification terminals, and trends in energy demand and supply. Opportunities for logistical and shipping cooperation for energy product transportation will enhance efficiency, reduce costs, and improve regional connectivity in the energy sector.

PNOC and Pertamina will also explore the commercialization of hydrogen products, biofuels, and sustainable aviation fuel (SAF) production. 

According to PNOC, this joint venture aligns with ASEAN's goals for collaboration, marking a new milestone in PNOC’s strategic initiatives.

Butalid emphasized that Pertamina is a major corporation that significantly contributes to Indonesia’s economy. 

“LNG can unlock new growth opportunities, spur local industrialization, and reduce reliance on polluting and costly diesel fuel. More importantly, LNG-based distributed generation can create quality jobs and greatly improve the quality of life for many island communities,” he said.

He highlighted Tawi-Tawi as a potential hub for agricultural and economic growth, supported by a reliable energy supply. 

“With stable and dependable energy, Tawi-Tawi could become a center for seaweed processing, fish processing, cold storage, and even tourism. LNG-powered baseload plants could enable Tawi-Tawi to host these industries,” he elaborated.

Dinagat Islands were also mentioned as a potential hub for manufacturing and exports. Butalid noted, “With access to baseload power, Dinagat could easily attract industries in tourism, food processing, and coastal management and research projects.”

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Philippine National Oil Company Renewables Corporation (PNOC RC)
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