PAG Optimistic About Pushing LNG Hub Business, Here's Why!
PT Perta Arun Gas (PAG) is optimistic that its business opportunities remain very large, according to the company’s Finance and GS Director, Muhammad Yudi Setiawan, who noted that PAG benefits from a strategic geographic location.
“PAG is located in northern Sumatra, on the Malacca Strait trade route. It is also on a busy international trade route, which is an advantage for us,” he said on CNBC Indonesia’s Squawk Box on Tuesday, 9 September 2026.
According to Yudi, the route is also heavily used for transporting liquefied natural gas from east to south, meaning many parties could use PAG as an LNG hub. Furthermore, Arun is a Special Economic Zone (KEK), one of the benefits of which is a tax holiday.
“In addition, only 10-30% of the Pertamina area is currently being used by PAG, so there is still plenty of space that can be utilised by tenants wishing to conduct transactions in Indonesia,” Yudi explained.
PAG continues to strengthen its position as a key LNG hub in Asia through its infrastructure and regasification services. The facility has the world’s largest LNG re-export loading volume, at 0.85 million tonnes, or 17.3% of the global market share.
Yudi revealed that under its long-term business plan, Arun will become a global integrated energy hub.
“So not only LNG, but also LPG, condensate, then fuel oil, and carbon capture storage is one of our concerns as well,” he said.
By 2034, PAG will build four LNG tanks to develop the LNG hub business, as well as revitalise fuel tanks, revitalise LPG tanks, and construct a gas processing plant facility.
“All of that will be at our site, along with the construction of two petrochemical tank units for an H2 plant and renewables,” Yudi added.
He added that PAG has not ruled out constructing tanks for blue ammonia. According to Yudi, these plans have already received approval from the company’s shareholders.
“In terms of the business plan going forward, we have created quite a lot, and it has already received approval from our shareholders as well,” he explained.