Jakarta (ANTARA News) - State-owned energy firm Pertamina will distribute liquefied natural gas (LNG) to Bangladesh and Pakistan following the working visit of President Joko Widodo to the South Asian countries last month.
In his written statement received by ANTARA, Thursday, Vice President Corporate Communication of Pertamina Adiatma Sardjito confirmed that the firm had signed agreements with Bangladeshs oil company, PetroBangla on Jan 28 and Pakistan LNG Ltd on Jan 27.
Sardjito noted that Pertamina and PetroBangla had inked a binding Letter of Intent for distributing one million tons per annum (mtpa) of LNG for 10 years.
He explained that the cooperation is valued at US$4 million.
The signing ceremony was held in Bangladesh and attended by Prime Minister Sheikh Hasina and President Joko Widodo.
Inked by Pertamina LNG Vice President Wiko Migantoro and Secretary of PetroBangla Syed Ashfaquzzaman, the agreement will be effective from the fourth quarter of this year.
"The commercial agreement is part of the bilateral cooperation between Indonesia and Bangladesh in the energy sector. Starting this year, Pertamina will annually distribute one billion tons volume of LNG for 10 years," Sardjito noted.
Meanwhile, Indonesias energy firm had also signed an inter-governmental agreement with Pakistan LNG Ltd in the energy sector last month. The contract is part of the sale and purchase agreement of 1.5 mtpa of LNG.
The agreement will be effective for 10 years, with optional extension of five years.
Sardjito stressed that the contract with Pakistan is worth US$6.4 billion.
He emphasized that the Indonesian government had initiated cooperation in the energy sector with Bangladesh and Pakistan since September last year. Widodos working visit to the two South Asian countries last month offered the momentum to Pertamina to set the deals on exporting LNG with several energy firms.
Source: ANTARA News