Pertamina International Shipping (PIS) has lined up long-term charters with global energy players for four LPG carriers worth a combined $49.3m.
The hydrocarbons shipping arm of Indonesia’s state oil company said the fixtures are part of commercialising its shipping operations and increasing revenue channels in international markets.
Included in the fixtures are two 22,500-cbm, 2011-built handysizes, with Geogas Trading chartering the Gas Walio and Vitol taking the Gas Widuri.
At the other end of the size spectrum, Dutch off-grid energy distributor SHV Gas Supply & Risk Management has chartered two small fully pressurised LPG carriers, the 5,018-cbm Gas Ambalat (built 2014) and 3,500-cbm Gas Arjuna (built 2012).
The charters range from six months to three years and were arranged through PIS Middle East, the company’s branch office in Dubai.
“The signing of this agreement indicates the effectiveness of PIS Middle East’s aggressive approach in increasing revenue in the international market, as well as proving the reliability of PIS’ fleets which are qualified to sail across the global scale,” said chief executive Yoki Firnandi.
According to the company, the four ships are expected to trade as far afield as Chile, Puerto Rico, Tanzania, Poland and Portugal.
VLGC Pool
It also revealed that one vessel has been deployed since early May in the Neptune VLGC Pool, set up by the Scorpio Group and Kuwait Oil Tanker Co in early 2022.
It did not divulge the identity of the VLGC but said it has since earned the company profits in the region of $865,000.
Andra Pelawi, country manager for PIS Middle East, through which the pooling arrangement was made, described pools as a good venue to grow the company’s chartering business while earning international market rates.
Pertamina began to target the international tanker markets in 2017 when it set up PIS in Singapore to operate a handful of MR tankers that were chartered out to foreign entities or deployed in pools.
The PIS brand name was carried over to the rest of Pertamina’s tanker fleet when the company reorganised and commercialised its shipping operations in 2021.
Previously, its vast fleet of tankers and gas carriers formed part of its logistics and distribution network, with shipping not considered as an individual profit centre.
PIS also handles Pertamina’s tanker chartering activities, fixing a large number of vessels from foreign and domestic owners on a mix of spot, medium and long-term charters.
Today the Jakarta-headquartered company has offices in Singapore and Dubai that focus on building the international side of the business.
The PIS fleet numbers well over 100 tankers and gas carriers. Prime assets on the tanker side are its three VLCCs, eight aframaxes and 20 or so handy tankers.
On the gas side, it owns three VLGCs, two handysize LPG carriers and seven small fully pressurised LPG carriers.
Firnandi recently said the company’s strategy is to develop its non-captive Pertamina business in the international tanker market, using a more mature business approach to realise its vision of becoming one of Asia’s prime marine logistics companies.
