PGN to Secure LNG Supply from Abadi LNG Project, Masela Block

Jakarta, CNBC Indonesia - PT Perusahaan Gas Negara (Persero) Tbk (PGN), as Pertamina’s Gas Sub-holding, has officially agreed in principle on the main commercial terms with Inpex Corporation (Inpex) regarding the off-take of LNG and natural gas from the Abadi LNG Project, Masela Block. The strategic agreement was signed at the Indonesian Petroleum Association Convention and Exhibition (IPA Convex) 2026 held in Jakarta on 20 May 2026. ‘This collaboration is part of PGN’s real commitment to optimise utilisation of domestic gas resources for customers, and also as part of the Pertamina Group in its role to meet energy needs and underpin national energy security,’ said PGN President Director Arief K. Risdianto, quoted on Thursday 21 May 2026. Through this agreement, PGN and Inpex as operator of Masela Block, together with joint venture partners PT Pertamina Hulu Energi (PHE) and Petronas Masela Sdn. Bhd., will advance this cooperation to the stage of a Sale and Purchase Agreement (SPA) binding for LNG and natural gas supplies. PGN’s role as a domestic buyer not only accelerates the Abadi LNG project towards Final Investment Decision, but also creates a strong internal synergy within Pertamina’s Oil and Gas Holding, where PHE acts on the upstream side and PGN secures the downstream side. This upstream-downstream synergy ensures Indonesia’s domestic energy resources can be enjoyed directly in an optimal manner by society and national industry. This step is also aligned with the Indonesian government’s policy to maximise utilisation of domestic natural resources to support economic growth, as well as addressing energy transition challenges by utilising natural gas as a transition energy that is more environmentally friendly. With the Masela Block gas reserves being very large, this cooperation is projected to maintain the stability of Indonesia’s clean energy supply in the long term, while also strengthening Pertamina Group’s position as a pillar of national energy security.