Pavilion Energy signs MOU with Pertamina on regional small-scale LNG projects

TEMASEK-backed Pavilion Energy has taken another step in its plans to develop small-scale liquefied natural gas (LNG) solutions in the region.

The group on Thursday morning signed a memorandum of understanding (MOU) with Indonesian state-owned energy firm Pertamina to work towards exploring opportunities in regional small-scale LNG projects, joint marketing, trading, procurement and investments.

"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 a year after Pavilion Energy said it plans to start providing small-scale LNG solutions in South-east Asia.

Such solutions are widely expected to gain in popularity as it would make available natural gas for users not connected to pipeline networks and would lower the barriers of entry into the LNG export market.

Industry players have said that Indonesia, with its sprawling archipelago of 14,000 islands and a population of about 250 million, has the potential and ambition to become the most important small-scale LNG player in Asia.