Recommended LNG Commercialization Strategy to Maintain Business Sustainability in the Global LNG Market: A Case Study of PPTETS

LNG supply and demand growth have steadily increased in the past 12 months, recovering from pandemic-related outages in early 2021. Supported by increased LNG supply and demand, a surge in LNG trading has been seen across the world, and there is no indication of slowing down in the near future. Those situations become the opportunity for an LNG seller who has the potential uncommitted LNG supply to be offered to the buyer. PPTETS (which is not a complete name of the company, but a real Singapore registered company), which is owned 100% by PPTET Ty (which is not a complete name of the company, but a real Japan registered company), which is a joint venture company between Pertamina and various Japanese utility & power companies, is required to anticipate that opportunity. With consideration of the dynamic changes in global LNG market development, PPTETS needs to formulate the company’s business strategy, which is intended to seize future business opportunities. The main objective of this research is to formulate a PPTETS LNG commercialization business strategy to generate profit and maintain sustainability in the global LNG market. The analysis will consider both primary and secondary data, with underlying theoretical for external factors such as PESTEL analysis and Porter’s Five Forces, while for internal factors analysis will utilize a resource-based view and VRIO. As a synthesis of the company’s internal and external analysis, SWOT analysis and TOWS matrix will then be utilized. Finally, based on the analysis and formulation that has been conducted, it could be concluded that PPTETS has the opportunity and capabilities to maintain its business sustainability by trading in the global LNG market. After considering several findings from both external and internal factors of primary and secondary data, aside from cost focus leadership as a generic competitive strategy, there are 3 (three) specific business strategies recommended to PPTETS in order to generate profit and maintain sustainability, which are (i) collaboration with Pertamina, (ii) developing PPTETS internal procedures, and (iii) further PPTETS’ business development.