PGN Ready to Absorb LNG Supply from the Abadi LNG Project, Masela Block
PT Perusahaan Gas Negara (Persero) Tbk (PGN), as the Gas Subholding of PT Pertamina (Persero), is prepared to absorb LNG supply from the Abadi LNG Project, Masela Block, to support domestic gas supply sustainability.
PGN’s Chief Executive Officer, Arief K Risdianto, said that they have officially agreed on the principal commercial terms, or agreements in principle, with Inpex Corporation regarding the offtake of LNG and natural gas from the Abadi LNG Project, Masela Block.
The strategic agreement was signed during the Indonesian Petroleum Association Convention and Exhibition (IPA Convex) 2026 held in Jakarta on Wednesday.
“This collaboration forms part of PGN’s concrete commitment to optimise the utilisation of domestic gas resources for customers’ needs,” Arief said in a statement from Jakarta on Thursday, 21 May 2026, as reported by Antara. He added that the collaboration also forms part of the Pertamina Group’s role in meeting energy needs and underpinning national energy resilience.
Through the agreement, PGN and Inpex, as operator of the Masela Block, together with their joint venture partners PT Pertamina Hulu Energi (PHE) and Petronas Masela Sdn Bhd, will progress the collaboration to the stage of a binding sale and purchase agreement (SPA) for LNG and natural gas supplies.
Arief added that PGN’s role as a domestic buyer would not only accelerate the Abadi LNG project towards a final investment decision, but also constitute a strong internal synergy within Pertamina’s Oil & Gas Holding, where PHE operates on the upstream side and PGN secures the downstream.
“This upstream-downstream synergy ensures that Indonesia’s domestic energy resources can be enjoyed directly and optimally by the public and the national industry,” he said.
This step also aligns with the Indonesian government’s policy to maximise the utilisation of domestic natural resources to support economic growth, as well as addressing energy transition challenges by using natural gas as a transitional, more environmentally friendly energy.
With the Masela Block’s vast gas reserves, according to Arief, the collaboration is projected to maintain long-term stability of clean energy supply in Indonesia, while strengthening Pertamina Group’s position as a primary pillar of national energy resilience.