Indonesia’s Pertamina International Shipping (PIS) is limbering up to launch a newbuilding tender for tanker tonnage.
Speaking to TradeWinds during the Gastech meeting in Houston, PIS chief executive Yoki Firnandi said that if it wants to grow, the company cannot rely on the Indonesian market — where it is the major player — and will look internationally to expand its fleet.
PIS, which contracted 15 MR tanker newbuildings at the beginning of this year, plans to invest in tankers and LPG carriers.
Firnandi confided that the company plans to open a newbuilding tender soon for LR2 tankers, although not for as many ships as in the MR order.
He said LNG dual-fuelled vessels would be the preferred choice. But he added that the challenge will be over the price.
PIS is also keen to get a flavour of new shipping sectors such as dry bulk and chemicals.
Firnandi said PIS will also start its bulk carrier business soon, possibly later this year or early in 2025, most likely with chartered in tonnage at first.
The company has also announced a plan to move into CO2 carriers with its partner NYK.
Firnandi confirmed the company’s recently stated aspiration to have a fleet of 500 ships, 200 of which would be owned and 300 chartered.
PIS operates about 310 to 320 vessels with roughly two-thirds of these time-chartered in. About 80% of its business is Indonesian.
Firnandi said the composition of the Indonesian business may remain similar since fossil energy growth is set to be around 2% annually.
The CEO acknowledged that 500 is just a number and said the company’s ability to grow across segments is also important.
But he added: “We plan to add more ships for the international business” and will likely be targeting tankers along with gas and LPG carriers.
Firnandi said the expansion is in line with the company’s moves to open new offices globally. The company has set up branches in Singapore and Dubai, and Yoki hinted that another one may be announced shortly.
He said it is important to build strong relationships with charterers and having offices globally will also help the company understand the industry better, casting eyes towards Asia and the US.
The company’s long-term plan is to triple its business by 2034.
LNG, for PIS, is a slightly different animal.
Last year, Pertamina tried to secure some LNG newbuildings and was seen in the market tendering for vessels. But Yoki said that with market uncertainties, delays with US liquefaction and hesitation from buyers, the company, which cannot buy ships on speculation, opted to postpone this.
Instead, he pointed to PIS’ partnership with NYK. He said the pair have recently had “intensive discussions and LNG carriers might be one of their first moves together”.
The company has tried to acquire some secondhand LNG carrier tonnage — specifically vessels with time-charter business attached.
Firnandi said there have been indications that the new administration in Indonesia may open up the country to allow for LNG imports, which will require more tonnage.
LNG is one of the company’s ambitions for fleet growth, as the product is part of the energy transition plan for Indonesia.
Firnandi said PIS sees LNG developing as oil did with the growth of imports, breakbulking and small-scale distribution to Indonesia’s many islands.
The company has already participated in some gas-to-power infrastructure projects that will require small-scale LNG carriers and floating storage and regasification units and believes there will be many more of these developments to come.
“That will be the future for LNG shipping in Indonesia and we want to be part of it and lead initiatives,” he said. “Like it or not, we have got to start moving.”
