The unit of state run energy firm, PT Pertamina, and Abu Dhabi National Oil Company, has signed liquefied petroleum gas and sulfur deal for US$2 billion in a four-year period - Photo by the Company

JAKARTA (TheInsiderStories) – The unit of state run energy firm, PT Pertamina, and Abu Dhabi National Oil Company (ADNOC), has signed liquefied petroleum gas (LPG) and sulfur deal for US$2 billion in a four-year period, the company announced last week. The national LPG demand is estimated to reach 8.30 million tones in 2022, increasing to 9.12 million tones in 2023, and 10.01 million tons in 2024.

Director of PT Pertamina Patra Niaga, Hasto Wibowo, said in a written statement this collaboration to ensure the national LPG supply which is projected to increase every year. Currently, he adds, the balance of national LPG import needs reached 6 million tones per year. He also stated, its possible the agreement to be extended every year.

Meanwhile, ADNOC senior president international relations, Salem Raheb Al Meheiri, welcomed the strategic partnership with Pertmaina. He guaranteed that it will supply the energy products reliably to Indonesia.

End of 2019, Uni Emirates Arab (UAE) and Indonesia, has agreed on the cooperation and business agreements in the fields of energy, agriculture, and sovereign wealth fund. The agreement was signed by senior minister for maritime and investment affairs, Luhut Binsar Pandjaitan, and the Crown Prince, Mohammed bin Zayed bin Sultan Al Nahyan, in Abu Dhabi.

The partnering countries had plans to invest up to US$10 billion for the infrastructure projects in Southeast Asia’ biggest economy. Pandjaitan has announced Indonesia needs $137 billion worth of investment for infrastructure projects across the archipelago.

Most of the investment (46 percent) is slated for oil and petrochemical refinery projects, while mineral processing facilities account for the second-largest share (34 percent), according to the minister. The remaining planned investment is bound for transportation, tourism, and other sectors.

In petrochemicals and petroleum sectors, the cooperation between Pertamina and ADNOC for the development of a refinery in Balongan, then Pertamina and Mubadala for the development of a refinery in Balikpapan. Then, power producer, PT Perusahaan Listrik Negara (PLN) and Masdar for the construction of a 145 Gigawatt floating solar panel, state-owned mining holding, PT Indonesia Asahan Aluminium and EGA for the development of a 500,000 ton-based aluminum smelter and hydropower smelter in North Kalimantan

The private sector, PT Chandra Asri Petrochemical Tbk (IDX: TPIA) and ADNOC also signed a long-term contract on the petrochemical projects. Then, an agreement in agriculture that will take place in Elite Agro, West Java and Central Kalimantan, as well as the agreement between DP World and Maspion Group for integrated industrial park in East Java.

Pandjaitan also invited UEA to see the potential of hydropower in North Kalimantan and Papua. Sujatmiko, the director at energy and mineral resources ministry, in a virtual conference today, rated Indonesia’ imports of LPG are expected to decline by six times in 2025, from 6.1 million tones to just one million tones per annum, as the country seeks to ramp up its coal gasification efforts.

Written by Editorial Staff, Email: theinsiderstories@gmail.com