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Sunday, July 14, 2024

NYK Signs MoU with Pertamina

Maritime Activity Reports, Inc.

June 25, 2024

Source: NYK

Source: NYK

NYK and PT Pertamina International Shipping (PIS), a marine logistics subsidiary of PT Pertamina, a state-owned oil and gas company in Indonesia, have signed a memorandum of understanding (MoU) to collaborate in the field of liquefied carbon dioxide (LCO2) and LNG. They will also jointly establish a ship-management company.

NYK and PIS have agreed to collaborate in obtaining business opportunities through assessments and feasibility studies for the transboundary transportation of LCO2 to and from Indonesia. The two companies aim to offer LCO2 transportation services for storage operators and CO2 emitters like Pertamina.

NYK and PIS agreed to begin full-scale discussions on joint ownership of LNG carriers. Based on NYK’s more than 40 years of experience in owning and operating LNG carriers, NYK will work with PIS to meet the demand for LNG transport in Indonesia, where further expansion of LNG production and consumption is expected.

Indonesia is one of the largest producers of oil and natural gas in Southeast Asia. Simultaneously, the country is actively investing in the construction of CO2 storage facilities. According to Indonesia’s Ministry of Energy and Mineral Resources, Indonesia's storage capacity, including saline aquifers suitable for massive storage, has the potential to reach 572 billion tons. This capacity is far more than the annual global carbon storage capacity anticipated by the end of 2024. The Indonesian government plans to become the largest storage operator in Asia by attracting demand for CO2 landfills from the surrounding areas.

The MoU is intended to contribute to the goal from the perspective of LCO2 transportation. Together with the demand for LNG carriers, the demand for LCO2 carriers is expected to grow because they are essential for transporting liquefied CO2 from storage sites to consumption areas.
Additionally, NYK has been focusing on the training of Indonesian seafarers through a long-term plan, including appointing Indonesian captains and chief engineers to NYK-operated LNG carriers.