State has distribution company PT Perusahaan Gas Negara (PGN) and Mubadala Energy (South Andaman) RSC LTD have signed a memorandum of understanding (MoU) to jointly explore the utilization of natural gas from the South Andaman Production Sharing Contract (PSC), including the development of gas pipeline infrastructure and the assessment of LNG infrastructure options.

This agreement builds upon a previous MoU signed in October 2024, which focused on studying the Arun gas liquefaction facility and regasification terminal to support upstream oil and gas activities.

The latest MoU marks a continued effort to design plans for meeting Indonesia’s growing gas demand across regions such as Sumatra and Java, especially after the realization of the Duri–Dumai–Medan pipeline. The study will also explore LNG development options to support broader operational needs across PGN’s network.

Ratih Esti Prihartini, PGN’s Director of Commerce, welcomed the initiative, emphasizing its potential contribution to strengthening Indonesia’s energy resilience in the face of increasing domestic gas demand.

“PGN is committed to exploring the gas supply from the South Andaman PSC as part of our long-term energy security strategy,” she said on Monday, July 7, 2025.

Ratih added that PGN will engage its subsidiaries, Pertagas and Perta Arun Gas, to assess infrastructure readiness and identify opportunities for development to support the gas distribution from South Andaman to potential customers. She also underlined the PGN Group’s commitment to transparency and good corporate governance (GCG) throughout the process.

Abdulla Bu Ali, President Director of Mubadala Energy’s Indonesia Business Unit, said that the collaboration reflects a shared vision to unlock the gas potential of South Andaman.

“This initiative reaffirms our commitment to supporting Indonesia’s national energy security,” he said.

Meanwhile, Fadjar Djoko Santoso, Vice President for Corporate Communication at PT Pertamina, highlighted that gas is a priority energy source in the national energy transition.

“This partnership supports Pertamina’s program to strengthen domestic gas supply,” he said.