Bumi Armada partners Pertamina’s unit and Davenergy Mulia Perkasa to commercialise LNG from Madura gas field

KUALA LUMPUR (Sept 13): Bumi Armada Bhd has signed a non-binding agreement with PT Pertamina International Shipping and PT Davenergy Mulia Perkasa (DMP), an Indonesian natural gas trading company, for the development and commercialisation of liquefied natural gas (LNG) from the Madura gas field in Indonesia.

In a statement on Wednesday, Bumi Armada said the agreement would outline the key principles to develop and commercialise LNG from the Madura gas field and its surrounding fields.

Pertamina International Shipping is the shipping and marine logistics sub holding of Indonesia’s state-owned energy company Pertamina.

It said preliminary discussions have been initiated with several potential off-taker clients and the first shipment of LNG is anticipated to take place three years after making the final investment decision.

Bumi Armada chief executive officer Gary Christenson said: “We are excited to collaborate with Pertamina International Shipping and DMP in this opportunity to bring sustainable and scalable solutions to reduce carbon emissions in Indonesia, which is also in line with Bumi Armada’s recently launched decarbonisation agenda to achieve net zero by 2050. This collaboration is a testament to our strong commitment towards providing the best decarbonisation solutions globally”.

Bumi Armada and Pertamina International Shipping are expected to collaborate, utilising their respective expertise and experience, in the development of a floating natural gas liquefaction and storage facility.

The collaboration aims to design, engineer, construct, install, commission, hook up and operate the facility, along with an LNG carrier. The parties also intend to transport LNG to consumers located in areas that lack access to clean energy sources.

Bumi Armada shares closed 2.88% or 1.5 sen higher at 53.5 sen, translating to a market capitalisation of over RM3.29 billion.