Japan's NYK Line and Pertamina of Indonesia are mulling over a joint venture to own and manage LNG carriers for Indonesia’s rising energy transport demand.
The Japanese shipping giant said it signed a memorandum of understanding with Pertamina International Shipping (PIS), a wholly owned subsidiary of Pertamina, for collaboration on energy transport. LNG will be a particular focus of the venture.
“This agreement positions the two companies as strategic partners in energy transport and covers ownership and management,” NYK said in a press release.
“The companies have already started discussions concerning a detailed joint business, particularly involving the ownership and management of LNG carriers as exclusive partners.”
“NYK will continue its efforts to secure stable-freight-rate businesses and contribute to reliable energy supplies through safe transportation.”
No further details were disclosed on the joint venture. TradeWinds has sought further comment from NYK.
One of the world’s largest LNG shipping firms, NYK operated a fleet of 74 LNG carriers as of 30 September.
Traditionally one of the top LNG suppliers in Asia, Pertamina has also been securing LNG volume overseas in recent years. The company is Indonesia’s state-owned energy firm.
There are concerns that Indonesia may turn into a net importer in the coming years due to rising domestic demand and the lack of upstream investments.
Until know, Pertamina has relied on chartered-in tonnage for its LNG shipping needs. It has been studying on small scale LNG projects to meet increasing electricity demand within the archipelago.
“The demand for energy transportation, especially LNG, is expected to increase in Indonesia,” NYK said.
“To address this demand, Pertamina, the largest oil and natural gas corporation in the state, and NYK, a shipping company having considerable experience with the ownership and shipmanagement of vessels, have agreed to collaborate.”
PIS has been expanding its tanker fleet to enhance Pertamina’s shipping operations. In 2018, the company reportedly acquired the 299,980-dwt Toba (built 2004), and the 45,902-dwt Challenge Polaris (built 2010) and Challenge Paragon (built 2009) from NYK.
