Strengthening cooperative system to contribute to both countries' low-carbon and decarbonization initiatives.
On June 20th, our company signed a memorandum of understanding with PT Pertamina International Shipping (PIS), a marine shipping subsidiary of PT Pertamina (Persero), a state-owned oil and gas-related company in Indonesia, for cooperation in the fields of liquefied carbon dioxide (LCO2) and liquefied natural gas (LNG) transport and joint establishment of vessel management companies. The signing ceremony was attended by Nicke Widyawati, President of Pertamina, Yoki Firnandi, President of PIS, and Kouyasu Watanabe, Senior Managing Executive Officer of our company.
We will establish a strong cooperative system with PIS in the LCO2 and LNG transport sectors, where future demand expansion is expected in Indonesia, which is focused on realizing a low-carbon and decarbonized society, and contribute to maritime transport stabilization and the development and employment of the country's seafarers through the joint establishment of a vessel management company.
The summary of the memorandum of understanding.
1. Agreement on LCO2 transport
Based on a strategic partnership agreement signed in 2022, we agreed with storage operators and CO2 emitting companies including Pertamina to collaborate towards creating business opportunities regarding cross-border LCO2 transport in Indonesia by conducting business feasibility evaluations and other feasibility verifications.
2. Agreement on LNG transport
We have agreed to begin full-scale discussions on joint ownership of LNG transportation vessels. Based on our experience in owning and operating LNG ships for more than 40 years, we aim to respond to LNG transportation demand in Indonesia, where increased production and consumption are expected, in cooperation with PIS.
3. Agreement on the establishment of a vessel management company
We have agreed to aim for the joint establishment of a vessel management company with PIS. Through this initiative, we aim to further strengthen our relationship with PIS and provide advanced vessel management services to respond to the expected increase in vessel demand in the country.
Background of signing memorandum of understanding.
Indonesia is not only the largest producer of oil and natural gas in Southeast Asia, but also actively investing in the construction of CO2 storage bases. According to the Ministry of Energy and Mineral Resources of Indonesia, there is a possibility of storing up to 572 billion tons by 2042, which greatly exceeds the storage capacity of bases that are expected to operate globally by the end of 2024, including those suitable for storage saline aquifers. The Indonesian government aims to attract CO2 burying demand from surrounding areas and plans to create the largest storage base in Asia. This memorandum of understanding between our company and PIS is intended to contribute to LCO2 transport from this perspective. LCO2 vessels are essential for transporting liquefied CO2 to storage and utilization facilities and, together with LNG, whose production and consumption are expected to expand in the country, are expected to increase future transportation demand.
In addition, our company has formulated long-term plans for seafarer training, including recruiting Indonesian captains and chief engineers for our operated LNG vessels. Through the joint establishment of a vessel management company, we will contribute to the training and employment of seafarers and the development of Indonesia's maritime industry.
Comments from each company.
Nicke Widyawati, President Director and CEO of Pertamina
I am proud to have attended this signing ceremony as a result of the strategic partnership between PIS and NYK in December 2022. This is the beginning of our journey and we look forward to accelerating our discussions towards the realization of our mutual business.
Yoki Firnandi, CEO of PIS
I am very pleased to welcome this day. Through a strong and long-term partnership with NYK, we will leap to the world not only in Indonesia and promote our values to the maximum. This memorandum of understanding symbolizes our leadership in the LCO2 transport field in the Indonesian region under the strong cooperative system of NYK in the decarbonization field and its expertise and strength.
Mr. Hiroyuki Watanabe, Executive Managing Director of our company.
Since the strategic partnership agreement with PIS, we have had many dialogues while exploring cooperation opportunities together, and I am very pleased to have reached a basic agreement towards co-operation in the field of LCO2 and LNG transportation, and the establishment of a joint ship management company. The cooperation between the two parties has entered a new phase with today's agreement. As a shareholder and partner of PIS, we will strongly support the company's continued success and contribute to the development of Indonesia's maritime industry and the realization of a low-carbon and decarbonized society.
Our company and PIS will continue to cooperate in a wide range of businesses, including LNG transportation and CCUS (Carbon Capture, Utilization and Storage) businesses aimed at low-carbon and decarbonization, and contribute to the development of Indonesia.
CCS (Carbon Capture and Storage) refers to the process of collecting CO2 emitted from thermal power plants, factories, etc. and storing it in stable underground layers for the production processes of crops, chemical drugs, construction materials, etc. CCUS (Carbon Capture, Utilization and Storage) includes the process of reusing CO2 in a useful way in addition to CCS. Liquid CO2 transport ships play an important role in both processes.
Company Overview
Headquarters: Jakarta, Indonesia
President Director & CEO: Nicke Widyawati
Website: https://www.pertamina.com/
Headquarters: Jakarta, Indonesia
President Director & CEO: Yoki Firnandi
Website: https://pertamina-pis.com/