Taguig City, Metro Manila – In a significant move toward strengthening energy capabilities between the Philippines and Indonesia, the Philippine National Oil Company (PNOC) and Indonesia’s PT Pertamina (Persero) (Pertamina) signed a Memorandum of Understanding (MOU) on November 7, 2024.
Oliver B. Butalid, President and CEO of PNOC, signed the agreement at the PNOC office in Manila on Thursday, November 7, 2024, witnesses by members of the management committees from both companies. This alliance aims to advance collaborative development in liquefied natural gas (LNG) and any other possible cooperation and collaboration in energy sectors that may be mutually agreed by both companies, marking both countries’ commitment to energy security, economic growth, and a low-carbon future in the region.
As part of the partnership, PNOC and Pertamina will explore cooperation opportunities in the LNG market in the Philippines including the establishing of LNG and Gas Infrastructure to meet rising energy demands in both countries.
During the signing, Butalid explained that this partnership aligns with broader ASEAN goals for collaboration, describing it as a milestone marking a new strategic direction for PNOC.
“We must find every opportunity to collaborate–connectivity and complementation of strengths. We believe LNG can give us the energy security and make us more competitive. Pertamina is a huge corporation and one of the drivers of the Indonesian economy. With the extensive operations they have, we are excited to leverage the expertise of Pertamina on LNG,” he noted.
The MOU also emphasizes knowledge exchange and joint market intelligence efforts between PNOC and Pertamina. Both companies will share information on topics such as LNG Supply Chain including commodity, sea transportation, regasification terminal, energy demand and supply trends in both countries. In addition to LNG initiatives, PNOC and Pertamina will explore potential commercialization opportunities in hydrocarbon products, biofuel, and sustainable aviation fuel production.
The collaboration also aims to see the opportunities for potential logistics and shipping cooperation to streamline the movement of energy products and materials. This study is intended to improve efficiency, reduce costs, and strengthen regional connectivity in the energy sector. Additionally, the partnership will also open the opportunities to focus on renewable energy advancements through joint studies that support environmental goals in both nations.
Both PNOC and Pertamina anticipate that the partnership will open up additional opportunities for innovation, job creation, and investment, benefiting the economies and energy security of both countries. As the partnership progresses, the companies expect that their combined expertise and resources will enable them to better respond to energy trends and explore new solutions for a sustainable energy landscape across the region.
