Gunvor Singapore initiated the arbitration processes on September 13, according to PGN.
The case was filed with the London Court of International Arbitration against PGN in relation to a master sales and purchase agreement and confirmation notice.
“The company respects the ongoing legal process and is committed to continuing its primary role in supplying natural gas energy for Indonesia, while maintaining its reputation and financial health,” PGN said.
PGN said the company “is optimistic about the steps taken to address this matter.”
“Our focus is to protect the interests of the company and its shareholders, as well as to ensure that the arbitration case is handled with utmost care,” it said.
PGN did not provide further details.
LNG Prime invited Gunvor to comment on the matter.
A spokesman for Gunvor said the company does not comment on legal matters.
Force majeure
In November 2023, PGN declared force majeure on its LNG supply deal with Gunvor Singapore.
“The company’s estimate of the force majeure period is no less than several months of the year 2024,” PGN said without revealing additional information.
The two firms entered into the LNG supply deal in June 2022.
In a joint statement at the time, PGN and Gunvor said they entered into a master sales and purchase agreement (MSPA) and confirmation notice (CN) for the supply of LNG.
The LNG supplies from PGN would complement Gunvor’s LNG portfolio, which is the largest amongst independent trading companies, the statement said.
PGN and Gunvor also did not reveal additional details regarding the supply.
This is the first LNG supply deal between the two firms.
It is worth mentioning here that PGN resolved a dispute with Norwegian FSRU player Hoegh LNG earlier this year over issues related to the Lampung FSRU charter.
The 2014-built 170,132-cbm FSRU serves a 20-year charter deal with PGN LNG, a unit of PGN, off the southeast coast of Sumatra in Indonesia.
