PGN agrees gas supply deals covering pipelines and LNG
Seven commercial documents include a planned 775 TBTU of LNG from Abadi Masela over 15 years from the start of commercial operations.
PT Perusahaan Gas Negara (Persero) Tbk (PGN), Pertamina’s gas subholding, signed seven commercial documents covering domestic pipeline gas and liquefied natural gas (LNG) supplies in Jakarta on 28 October 2026. PGN said the agreements were intended to broaden its supply sources and meet customers’ medium- and long-term needs.
The signing took place at FOREK Hulu Migas 2026. The package comprises three gas purchase and sale contracts, an amendment to a gas contract and three LNG purchase and sale agreements.
For pipeline supplies, the EMP Bentu contract provides for up to around 4 BBTUD. Medco Sakakemang B.V. is to supply up to around 38 BBTUD from 2027, while PEP Sengeti’s agreement covers up to around 5.7 MMSCFD from 2028. A third amendment to the Medco South Sumatera contract covers 15 BBTUD.
The LNG arrangements provide for deliveries from South Hub starting in 2027 and North Hub starting in 2029. The Abadi Masela agreement envisages 775 TBTU over 15 years beginning when the project enters commercial operation. PGN expects it to become a long-term domestic LNG source, in line with the project’s development and operational readiness.
For Masela, the latest agreement builds on a Heads of Agreement and Key Term Sheet reached with the project’s production-sharing contractors at IPA Convex 2026 in Jakarta on 20 May 2026.
PGN president director Arief K. Risdianto said using both pipeline gas and LNG was part of the company’s strategy to respond to changing supply availability and support future demand across industry, commerce and electricity generation.
