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 to collaborate in the field of liquefied carbon dioxide (LCO2) and liquefied natural gas (LNG) and jointly establish a ship-management company. Pertamina President Nicke Widyawati, PIS President Yoki Firnandi, and NYK Managing Executive Officer Hironobu Watanabe attended the signing ceremony at Pertamina’s headquarters in Jakarta, Indonesia.
NYK aims to develop a strong cooperative relationship with PIS in the field of LCO2 and LNG transportation, which is a priority for the Indonesian government and is expected to grow in the future towards a low-carbon and decarbonized society. Furthermore, by jointly establishing a ship-management company, NYK plans to contribute to stable ocean transportation and create opportunities for training and employment for seafarers in the country.
Key Points of the MoU Include:
- Agreement on LCO2 transportation – Based on the strategic partnership agreements signed in 2022, 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.
- Agreement on LNG transportation – 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, they will work with PIS to meet the demand for LNG transport in Indonesia, where further expansion of LNG production and consumption is expected.
- Agreement on the establishment of a ship-management company – NYK and PIS have agreed to jointly establish a ship-management company. Through this initiative, they aim to build a stronger relationship with PIS and provide advanced ship-management services to meet the expected increase in demand for ships in the country.
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. This MoU is intended to contribute to this 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. Through the joint establishment of the ship-management company, NYK will continue training high-quality seafarers and creating employment for them, as well as contributing to the development of the maritime industry in Indonesia.
Nicke Widyawati, President Director & CEO, Pertamina “I am proud to witness this signing ceremony as a follow-up to the strategic partnership between PIS and NYK established in December 2022. This marks the beginning of our journey, and we look forward to accelerating discussions between PIS and NYK to implement joint business.”
Yoki Firnandi, CEO, PIS “Through our long-term partnerships and close relationships with NYK, this MoU will drive initiatives to maximize our value by growing beyond Indonesia. This MOU symbolizes our leadership in the LCO2 transportation field in the region, based on NYK’s technology, expertise, and strong collaboration for a low-carbon and decarbonized society.”
Hironobu Watanabe, Managing Executive Officer, NYK “I am delighted that we have signed an MoU to collaborate in the field of LCO2 transportation and jointly establish a ship-management company. Since the signing of the strategic partnership agreement in 2022, we have engaged in numerous discussions to explore opportunities for collaboration and achieving our shared objectives. As a shareholder and partner of PIS, we are committed to providing steadfast support for the company’s advancement and playing a role in the development of Indonesia’s maritime industry and the realization of a low-carbon and decarbonized society.”
NYK will continue to collaborate with PIS in a wide range of businesses, including LNG transportation and the carbon capture, utilization, and storage (CCUS) business, for which demand is expected to grow toward the realization of a low-carbon and carbon-neutral society, thereby contributing to the development of Indonesia.
Carbon Capture and Storage
CCS (Carbon Capture and Storage) is a process that captures CO2 released from thermal power plants, factories, etc., and stores it in a stable underground geological formation. In addition to CCS, CCUS (Carbon Capture, Utilization, and Storage) includes a process that uses CO2 in production processes for crops, chemicals, construction materials, etc. LCO2 carriers play an important role in both processes.
Source NYK LINE