Indonesian energy company Pertamina is forging ahead with a search for up to three LNG carrier newbuildings.
Brokers said the state-owned company launched a tender inviting offers from both shipyards and owners for up to three LNG carrier newbuildings of 175,000 cbm each.
Pertamina was due to select the preferred bidders within the past week.
Brokers indicated that South Korean shipbuilders Hanwha Ocean and Hyundai Heavy Industries are competing for the contract.
One suggested that Japanese shipowners, working in partnership with Indonesian companies, will be best placed to scoop the business.
In December last year, Pertamina International Shipping (PIS) hooked up with Japan’s NYK in a partnership.
At the time, Pertamina president director Nicke Widyawati said she expected the partnership will encourage PIS to launch new ventures such as LNG transportation, broaden its international market reach and enhance its capabilities.
Those following the business said Pertamina is pursuing the newbuildings as it wants to break into the international LNG shipping business and use these vessels to carry its own production and traded volumes.
TradeWinds has contacted Pertamina for comment about its LNG shipping tender.
In November last year, Pertamina said it was planning a $3bn fleet-renewal and diversification scheme over the next five years, with the cash to be spent on tankers, LPG carriers and entry into the LNG carrier sector.
The company has operated LNG carriers before, chartering in tonnage controlled by domestic shipowners working with Japanese partners.
Pertamina reorganised and commercialised its shipping operations in 2021 and recently chartered out four of its LPG carriers to global players as the company continued its push towards international expansion.
Indonesia was among the early LNG producers and traditionally has had strong links with Asian buyers, particularly those in Japan.
But domestic LNG production has been waning, down around 23% to 14 million tonnes in 2022 from just over 18 million tonnes in 2018 as some of the country’s gas fields — like those supplying the Bontang LNG plant — mature and decline.
New LNG production is in the works for the country and Pertamina.
Pertamina and Malaysia’s Petronas have signed an agreement with Shell to take over the energy major’s interest in the Abadi LNG project.
The Indonesian energy company has also signed a memorandum of understanding with Japan’s Inpex Corp to collaborate on various gas fields with a focus on the Abadi LNG project.
The companies plan to pursue opportunities to collaborate on the offtake and transportation of LNG and the production of hydrogen and ammonia.
Also BP’s existing Tangguh LNG plant in Indonesia, with capacity of 7.6 million tonnes per annum, is expanding with a third train.
In a second-quarter results call this month, BP chief executive Bernard Looney said this third liquefaction train, which will add 3.8 mtpa of LNG supply, is in the process of starting up, adding that the company has recently extended Tangguh’s production sharing contract until 2055.
In 2022, the bulk of Indonesia LNG cargoes were exported to buyers in the Asia-Pacific region but the sky-high prices seen in Europe saw others sold into this market.
