Flying To Turkey, PIS Adds Two New VLGC Ships

PT Pertamina International Shipping (PIS) signed a collaboration with one of BGN's business units, an international commodity trading company, to build and add two giant liquid petroleum gas (LPG) tankers or a very large gas carrier (VLGC).

The signing of the cooperation was held in Istanbul, Turkey, by PIS CEO Yoki Firnandi and BGN Trading CEO Emin Imanov on July 1, 2024, and witnessed by BGN Group CEO Röya Bayegan.

"BGN is a strategic partner of PIS and Pertamina Group in supporting Indonesia's energy security. Last year, we signed the first agreement in Abu Dhabi. Now, we are here to sign another agreement for the co-owning of two VLGC units to be delivered in 2027. We are pleased to be able to support and strengthen cooperation between the two companies," said PIS CEO Yoki Firnandi quoting Antara.

In the cooperation agreement, both parties will establish a joint ownership structure with ship delivery and rental service providers by BGN in the long term.

The two new VLGCs are planned to have a capacity of 88,000 cubic meters, double fuel or dual fuel that can be operated on fuel oil and LPG.

Each ship weighing dead (deadweight tonnage/DWT) is about 55,000 MT with a draft of about 12 meters, and about 230 meters long.

The ship will be built by the world's largest shipbuilding company, HD Hyundai Heavy Industries Co Ltd.

In order to realize this collaboration, both parties are exploring the establishment of a new joint venture company or using existing companies for joint VLGC ownership.

"We believe this will expand the new market and cargo portfolio from PIS. This initiative is as important as the expansion and implementation of technology to support Pertamina Group's environmental sustainability program," added Yoki.

Yoki said that PIS operations currently contribute to Indonesia's achievements above the Global Green Security Index average, especially in energy distribution, energy security, and accessibility.

With continued expansion, he believes cooperation with BGN is the right step in carrying out the vision of national energy resilience.

Pertamina Group President Director Nicke Widyawati, who was also present to witness the signing of the cooperation, believes the collaboration is a step to strengthen the company's operational capabilities.

"Not only that, we also believe this will expand the new market and cargo portfolio from PIS. This initiative is as important as the expansion and implementation of technology to support Pertamina's environmental sustainability program," he said.

Meanwhile, BGN Group CEO R\"uya Bayegan added that his party is proud to be able to increase mutually beneficial cooperation.

"BGN continues to play a key role in delivering LPG and other energy commodities that can meet global demand and encourage energy transition," he said.

PIS and BGN have previously collaborated in the procurement of the VLGC of Tulip and Bergenia in January 2024. This collaboration makes PIS the largest LPG transport company in Southeast Asia.

Through this latest collaboration, PIS aims to increase the efficiency and capacity of LPG transportation.

BGN Trading CEO Emin Imanov assessed that the cooperation between the two companies could contribute to expanding and strengthening relations between the two companies.

"This new and efficient LPG transport fleet will support BGN's growth as an international energy trading platform. I believe this cooperation can produce satisfactory results for both parties," he said.

The collaboration between the two companies also explores the potential partnership in the energy transition era, including LPG transportation and petrochemicals.

Data from the Ministry of Energy and Mineral Resources (ESDM) shows that LPG consumption in Indonesia reached 8.7 million tons in 2023, up 1.73 percent from the previous year. This figure is the highest consumption in the past decade.