(London, 2 November 2012) – PT Shell Indonesia (Shell) and PT Perusahaan Gas Negara (PGN) today entered into a Memorandum of Understanding (MoU) to explore the potential for the development of small-scale Liquefied Natural Gas (LNG) operations in Indonesia.
The MoU calls for cooperation and coordination efforts between the two parties to conduct a technical and economic feasibility study which will determine the viability for small- scale LNG including liquefaction, and the development of the respective supply chains using indigenous gas supplies, potentially to supply industrial and power customers.
The MOU signing ceremony takes place on the hills of the State Visit of President of the Republic of Indonesia Susilo Bambang Yudhoyono in UK. Representing UK Government to witness the signing ceremony is Minister for Trade and Investment Lord Green, while Indonesian Government is represented by Minister of Energy and Mineral Resources Jero Wacik, Minister of Industry MS. Hidajat and Minister of Trade Gita Wirjawan. Darwin Silalahi, President Director and Country Chairman of Shell Indonesia, signed the memorandum on behalf of Shell while Mr. Hendi Prio Santoso, PGN President Director, signed on behalf of PGN.
“This MoU brings together Shell’s technological expertise as one of the world’s largest LNG producers and PGN’s experience in gas distribution in Indonesia. We look forward to a fruitful partnership that will pave the way for meeting Indonesia’s growing energy demand through cleaner natural gas,” Mr. Silalahi commented.
For further info, please contact :
Sri Wahyu Endah
Communications and Social Performance Manager
PT Shell Indonesia
+62 21 29970307
About Shell Indonesia
The history of Royal Dutch Shell in Indonesia has started over 120 years ago, following its first oil discovery in Pangkalan Brandan, North Sumatra.
Shell today has a strong downstream presence in Indonesia. It was the first international petroleum retail brand in the country and is now a leading international oil company (IOC) with 65 operating sites in Greater Jakarta and Surabaya. In 2006, Shell started its commercial fuels, marines and bitumen businesses in Indonesia, providing oil products and related technical support to the industrial, transport and mining sectors. Shell is also recognised as a leading international company with the largest lubricant market share, after Pertamina, serving motorists and industrial customers.
Shell brings in significant investment to build fuels supply chain infrastructure in Indonesia, in cooperation with its local partners. The fuel storage facilities in Gresik and Pulau Laut, the lubes warehouse facility in Bekasi, Surabaya and Balikpapan, and the bitumen storage facility in Cirebon, are examples of successful joint ventures with leading Indonesian companies such as Astra International and Adaro Energy.
Last year, Shell re-entered the upstream business in the country of its birthplace. It signed an agreement to be the strategic partner with Inpex who operates the Masela PSC which includes the Abadi gas field. Shell’s participation in the Abadi field underpins its growth strategy and recognizes its world leader position in both LNG and Floating LNG (FLNG) developments.