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Reaching International Hub LNG Market, Pertamina Gas Subholding & Axpo Singapore Sign Heads of Agreement (HoA)

Apr 19, 2022

As part of its vision to become a world-class LNG Hub and Regasification company, Pertamina Gas Subholding affiliate PT Perta Arun Gas (PAG) has successfully collaborated with Axpo Singapore, a subsidiary of the Axpo Group, the largest energy company in Switzerland. It was marked by the signing of the initial Head of Agreement (HoA) agreement held in Baden, Switzerland, on March 25, 2022, Friday local time.

President Director of PAG, Bara Ilmarosa, stated that this collaboration proves PAG’s ability to play an active role in meeting national & international energy needs. “This collaboration in the Liquified Natural Gas (LNG) storage tank or LNG Hub sector will increase revenue for the company,” he said.

It is hoped that after the signing of the initial HoA initiation, PAG and Axpo Singapore can undergo a good cooperation process in the future. “Axpo will become an LNG Hub tank user to store LNG,” Bara continued.

The day before, PAG made a working visit to the Indonesian Embassy in Bern, Switzerland, to introduce the business overview and information on the LNG business cooperation plan between PAG and Axpo Singapore. “The Indonesian Embassy in Bern provides full support, and we also expect support from other relevant partners for cooperation in the energy development sector in Switzerland,” added Bara.

In his response, the Indonesian Ambassador to Switzerland, Muliaman Hadad, assessed that the collaboration between PAG and Axpo was very strategic. It is in line with Indonesia’s and Switzerland’s commitments toward Climate Neutral 2050, the Paris Climate Change Agreement, and the UN Climate Change Conference in Glasgow (COP26) held some time ago. “We support the business development and investment in LNG infrastructure following Indonesia’s aspirations for energy transformation,” he said.

PAG currently manages five LNG refineries/tanks, four are operating, and one tank will be revitalized. Furthermore, after being revitalized, the tank is used by Axpo for five years, according to the agreement.

The total PAG area is 1,600 hectares in the Ex Asset of PT Arun LNG and is part of the Arun Lhokseumawe Special Economic Zone (KEKAL), with a strategic location in Lhoksumawe, Aceh, close to the Malacca Strait as an international shipping lane, as a strong capital for Indonesia’s vision to become Asia’s LNG Hub by 2030.

Axpo has been active in the global LNG market for over 12 years and offers LNG supply. Fluctuating LNG demand with reference prices can create optimal and structured opportunities. Axpo also offers its customers access to the international gas market. In 2020, Axpo opened an office in Singapore to strengthen the company in Asia’s growing LNG market.

Axpo is also driven by one goal. It is to build a sustainable future through innovative energy solutions. The largest renewable energy company in Switzerland has led the international market in trading in energy, solar, and wind power. With the experience and expertise of more than 5,000 employees driven by innovation, collaboration, and impactful change spirit, Axpo innovates to meet the growing needs of its customers in more than 30 countries in Europe, North America, and Asia.

Image credit Pertamina