Insight
Indonesia's PERTAMINA-PGN to merge: what are the implications?
Report summary
PGN (Perusahaaan Gas Negara) held an extraordinary shareholder meeting on Thursday, 25 January 2018, as requested by Indonesia's Minister of State-owned Enterprises. The meeting approved the transfer of the government's 57% share in PGN to PERTAMINA, paving the way for PGN to merge with PERTAMINA. Subsequently, PGN will acquire Pertagas, PERTAMINA's subsidiary in gas transportation and distribution. We view the merger as positive for PERTAMINA and PGN, given the complementary gas pipeline businesses, and the potential for corporate synergies. However, the combined company, will have a dominant position across the whole gas value chain – from upstream, to midstream and downstream. Abuse of this dominant position, to the detriment of other market participants, could be a real risk unless supported by additional regulations. Third-party access to pipelines, or a monopolistic approach to negotiations with upstream producers are key risks to be mitigated.
Table of contents
- What's happened
- Background
- Implications
-
Uncertainties
- Appendix: PERTAMINA and PGN's key financial figures
Tables and charts
This report includes 2 images and tables including:
- PERTAMINA and PGN's positions in the gas market
- Indonesia's PERTAMINA-PGN to merge: what are the implications?: Image 2
What's included
This report contains:
Other reports you may be interested in
Asset Report
Guangxi Other zinc mine
It is the combined production from numerous small mines in Guangxi province which we do not include as individual assets in cost service.
$2,250
Insight
Decoding the Permian’s deeper bench potential
Permian E&Ps are increasing drilling in deeper benches, but how do these zones stack up against established primary development targets?
$1,350
Asset Report
Inner Mongolia (Northeast) zinc mines
A detailed analysis of zinc mines in northeast Inner Mongolia, China.
$2,250
