SINGAPORE - Temasek-backed liquefied natural gas (LNG) company Pavilion Energy has inked an agreement with Indonesian state-owned oil and gas giant Pertamina as it forges ahead with its plans to develop small-scale LNG solutions.
The memorandum of understanding (MOU) between the two firms, signed on Thursday morning, is aimed at working together to meet energy needs in the region. It includes exploring opportunities in small-scale LNG projects in South-east Asia, as well as joint marketing, trading, procurement and investments of LNG.
"This MOU supports the parties' interests in developing energy solutions in the region, and fosters closer collaboration between the two parties," said a Pavilion Energy spokesman.
The agreement comes one year after the Temasek-backed group said it plans to develop small-scale LNG solutions within the region - a cost-effective way of making natural gas available to energy users that are not connected to pipeline networks.
Industry players have noted that such solutions would be ideal for Indonesia, which has the potential and ambition to become the most important small-scale LNG market in Asia, with its archipelago of 14,000 islands.