Indonesia's state-owned energy company, Pertamina, has initiated a gas swap scheme to address the country’s natural gas demands, in line with directives from special government task force SKK Migas.
The agreement involves Pertamina and partners from the West Natuna Group Supply Group, gas suppliers from Corridor Block and Jabung (South Sumatra block), and Singaporean companies Sembcorp Gas and Gas Supply, as well as domestic buyer Perusahaan Gas Negara.
The deal was signed at the 49th Indonesian Petroleum Association Convex on 21 May 2025.
The scheme is a strategic response to the dual challenge of declining natural gas supplies in Sumatra and rising domestic demand, particularly within the electricity and industrial sectors. It will be implemented by designating a portion of the export volume to satisfy domestic demand.
Pertamina president director Simon Aloysius Mantiri said: “The gas swap scheme will guarantee the availability of domestic gas to drive national economic growth according to the targets set by the Government.
“This effort is made by Pertamina to support President Prabowo's Asta Cita vision, where the certainty of domestic energy supply will maintain national energy security.”
Mantiri noted that the gas swap arrangement will contribute to the enhancement of the domestic gas supply by offering an alternative means of securing natural gas for local consumption.
Pertamina also announced the signing of a production sharing contract with SKK Migas by its subsidiary Pertamina Hulu Energi, in collaboration with consortium partners Petronas Energy Binaiya and EO Binaiya, for the Binaiya Working Area (WK) offshore eastern Indonesia.
This agreement is a part of the government's initiatives to boost investment in the energy sector, particularly in oil and gas, to enhance energy security and promote sustainable economic growth.
In a related development, Pertamina disclosed in November 2024 its evaluation of potential liquefied natural gas (LNG) projects in the Philippines, initially focusing on LNG transportation and storage, with potential expansion into exploration, production and distribution.
