JAKARTA – It is known that PT Pertamina Persero Holding has finally given the green light to PT Perusahaan Gas Negara (PGN) Tbk to continue selling LNG for four years with Gunvor Singapore Pte Ltd (Gunvor).
“The information we managed to obtain, on Thursday morning yesterday, PGN Directors, Pertamina Directors, Pertamina Holding Board of Commissioners and BUMN Deputy Minister Pahala Nugraha Mansury had held a meeting. The meeting was chaired by Pertamina’s Main Commissioner Basuki Tjahaja Purnama. Pertamina’s Directors attended, among others, the Director of Finance Emma Sri Martini and Director of Strategy, Portfolio and Business Development Salyadi Saputra,” said Secretary of the Center of Energy and Resources Indonesia (CERI) Hengki Seprihadi, Friday (9/6/2023) evening.
Hengki said, on Friday afternoon, he had directly confirmed the existence of the meeting and the matter of allowing PGN to continue the transaction with Gunvor to Pertamina Main Commissioner Basuki Tjahaja Purnama.
“The statement from Komut Pertamina to us, it is true that the meeting took place. In essence, Komut Pertamina emphasized that there should be no loss-making sales,” said Hengki.
Previously, it was revealed the reason for the dismissal of the two directors of PT PGN Tbk. The Minister of BUMN through the shareholders replaced both of them due to the problem of the Director of Strategy and Business Development of PGN’s carelessness in entering into a 4-year LNG sales contract with the company Gunvor Singapore Pte Ltd (Gunvor).
The LNG transaction that Pertamina purchased from Woodside has the potential to harm Pertamina.
“As for the leaks from last Thursday’s meeting, Pertamina Holding decided, among other things, that the Woodside LNG cargo is available and can be used as long as there is no loss,” explained Hengki.
Hengki further stated that the Pertamina and PGN high-ranking meeting also decided that PGN should continue negotiations with Gunvor back to back from Pertamina’s availability, with the main condition not to lose money.
“The meeting also requested that Pertamina and PGN have detailed discussions after the meeting,” said Hengki.
Contract with CNTIC
PGN’s deal with Gunvor recently revealed that PGN had signed an LNG Sales and Purchase Agreement with Petronas LNG Ltd (PLL) on June 29, 2022. PLL as seller and PGN as buyer.
“The information we received also made us aware that PGN had also signed an LNG Sales and Purchase Agreement with the China National Technical IMP & EXP CORP (CNTIC) dated July 1, 2022. PGN is the seller and CNTIC is the buyer. The term of the second agreement The sale and purchase agreement is valid from January 1, 2024 to December 31, 2025,” explained Hengki.
Based on this information, added Hengki, CERI again reminded both Pertamina and PGN to really anticipate the recurrence of PGN’s deal with Gunvor.
“Because of course if this really happened, it means that there was a serious error in the planning, what is behind the planning error and its mitigation must be immediately explored, because it has the potential to harm PGN, Pertamina and ultimately harm the country,” said Hengki.(*)
