Pertamina, PNOC sign agreement on gas supply

Indonesia?s state oil and gas company Pertamina on Monday signed an agreement with Philippine National Oil Company (PNOC) to supply the Philippine with liquefied natural gas (LNG) from Tangguh project in Irian Jaya.

The agreement did not entail the volumes of the LNG to be shipped to the Philippine.

Pertamina president director Baihaki Hakim and the president of PNOC, Ambassador Thelmo Cunanan, signed the agreement document in a business luncheon attended by entrepreneurs from the two countries. The Indonesian Chamber of Commerce and Industry (Kadin) organized the event in conjunction with the visit of Philippine President Gloria Arroyo.

Cunanan told Petromindo.com after the signing ceremony they had yet to decide how much LNG would go to the Philippine, under the contract.

He said PNOC was going to conduct due diligence on the LNG volumes, and expected to complete it within six months.

Also on Monday, Pertamina and PNOC signed another accord on the possibility of conducting joint upstream and downstream activities in the gas sector. But Cunanan told Petromindo.com priority would be given to downstream activities notably the construction of pipelines to channel natural gas either from East Kalimantan or East Natuna to the Philippines, and geothermal industrial activities. PNOC has adequate experience in the geothermal sector, Cunanan added.

Recently, Pertamina signed a LoI with a Philippine power company, GNPower, to supply LNG from the Tangguh project in Irian Jaya. (alex/godang)