Companies & Finance

Pertamina-PGN merger inches closer to completion

Indonesia has cleared another hurdle in its efforts to create a unified gas player, but some obstacles remain Indonesia has cleared another hurdle in its efforts to create a unified gas player, but some obstacles remain.
By Damon Evans 12 February 2018 0 29532
Joko Widodo Indonesian President Joko Widodo. (PA)

The merger of Indonesian NOC Pertamina and Perusahaan Gas Negara (PGN) is close to completion following approval of the deal by the national gas distributor’s shareholders late last month. 

The move is expected to have a positive effect on the Indonesian gas sector and would be good news for Pertamina, which is at risk of having committed to buying more LNG than it needs. 

“The merger will give [Pertamina] access to PGN’s major industrial customers, easing the risk of oversupply,” Edi Saputra, an Indonesia gas expert at...