PGN and Mubadala Energy partner to explore gas supply, infrastructure, and LNG development from Indonesia’s South Andaman Working Area.
Indonesia’s state-owned gas distributor PT Perusahaan Gas Negara Tbk (PGN) and Abu Dhabi-based international energy firm Mubadala Energy South Andaman RSC Ltd. have taken a significant step towards exploring the commercial potential of natural gas from the South Andaman Working Area (WK) in Aceh. On July 2, 2025, the two companies signed a Memorandum of Understanding (MoU) to jointly assess the viability of distributing gas from the region, along with the development of supporting infrastructure including pipelines and liquefied natural gas (LNG) facilities.
PGN’s Commercial Director, Ratih Esti Prihartini, stated that the partnership represents a key opportunity to strengthen energy cooperation in the South Andaman region. She noted that tapping into the gas reserves in this area could play a pivotal role in enhancing domestic energy security and meeting the country’s growing demand for natural gas.
This is not the first collaboration between PGN and Mubadala Energy. In October 2024, the two parties signed a previous MoU to evaluate the potential use of the Arun Refinery and regasification terminals in support of upstream oil and gas operations. The new agreement builds on this earlier cooperation by expanding the scope to include pipeline infrastructure and LNG development.
As part of this initiative, PGN will be working closely with its subsidiaries Pertagas and Perta Arun Gas. Together, they will assess the technical and operational readiness of existing and new infrastructure needed to transport gas from the Andaman region to end-users. Ratih also stressed PGN’s commitment to good corporate governance and transparency, especially regarding the data and operational activities related to the South Andaman area.
Abdulla Bu Ali, President Director of Mubadala Energy South Andaman RSC Ltd., emphasized the considerable potential of gas production from the South Andaman WK. According to him, the output could be strategically important in supplying gas to various sectors, particularly once the planned Duri-Dumai-Medan pipeline becomes operational. This would enable a consistent supply chain extending from Sumatra to Java.
Furthermore, Abdulla highlighted the prospects of LNG development, which would allow broader distribution across all PGN operational zones. He described the MoU as a crucial step in a wider cooperation framework, aimed at ensuring that both commercial and infrastructural plans are aligned. Such coordination, he said, is essential for maximizing the benefits to all stakeholders involved in the gas value chain.
This collaborative effort marks a forward-looking approach to energy security and infrastructure development, reinforcing the importance of cross-border partnerships in advancing national energy goals.
