Indonesia and UAE sign $23B LPG deals

Indonesian President Joko Widodo today gave a keynote speech at a sustainability conference in the UAE. While in the country, he met with Crown Prince Sheikh Mohamed bin Zayed to oversee the signing of 11 business deals.

The Abu Dhabi National Oil Company (ADNOC) said it will supply Indonesian company Pertamina with up to 528,000 before the end of the year.

It also signed a memorandum of understanding (MOU) with Chandra Asri Petrochemicals to investigate supplying naphtha as a feedstock for current and future cracking processes in Indonesia.

Another MOU promised ADNOC would explore development of a crude-to-petrochemical refinery in Balongan, east of Jakarta.

The UAE minister of state and ADNOC CEO Sultan Ahmed Al Jaber said: “The agreements signed with Pertamina and Chandra Asri will potentially help ADNOC to secure additional in-market presence in one of Southeast Asia’s fastest-growing economies, enabling new domestic value-creation opportunities across the hydrocarbon chain.”

The company said that its LPG deal would help the company in its goal to sell more products inclusive of their shipping cost, building its logistics capability.

Pertamina’s president director and CEO Nicke Widyawati signed the deal on behalf of her company.

She said: “We expect that both the potential refinery development at Balongan and the direct LPG supply will allow us to optimise Indonesia’s oil and gas value chain, better serve the domestic market through our vast distribution networks across the whole archipelago and access new opportunities to meet growing global demand for petrochemical products.”

The company also said the deal may “help lay the groundwork for other potential areas of collaboration between the two companies”.

Other deals included agreements of collaboration between the two governments in areas such as healthcare and education.

ADNOC today announced plans to cut a quarter of its greenhouse gas emission intensity by 2030. It also pledged to plant 10 million mangrove saplings over the next two years.

News Source: Link

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