Pertamina International Shipping Cooperates With Badak NGL To Develop LNG Business

Pertamina's giant tanker while leaning on the dock. (Photo: Antara)

JAKARTA - PT Pertamina International Shipping (PIS) signed a memorandum of understanding (MoU) with PT Badak Natural Gas Liquefaction (NGL) for the development of the liquefied natural gas (LNG) business.

Acting Corporate Secretary of PIS Roberth MV Dumatubun revealed that the domestic LNG business potential in the country continues to grow, starting from distribution for power generation needs, LNG needs in domestic refineries, industrial needs, to smelters.

PIS needs to expand in the control of LNG terminal technology by cooperating with a fellow Pertamina Group company that is competent in the LNG business, PT Badak NGL.

"This is also in line with increasing the effectiveness and efficiency of compatibility between the terminal and the ship," said Robert in an official statement, Monday, May 30.

PIS and Badak NGL cooperation agreement signed by PIS Business Planning Director Wisnu Medan Santoso and PT Badak NGL President Director & CEO Gema Iriandus Pahlawan, on Tuesday, 24 May 2022.

The signing of this MoU consists of, but is not limited to the Ship-shore Compatibility Study (SSCS) related to LNG distribution which is projected to transport LNG cargo from the Bontang Terminal, Engineering Design (FEED), EPCC, Operations, and Terminal Maintenance/STS LNG or LPG, and Development of Green Terminal for SH IML's terminal.

"In addition to encouraging synergies within the Pertamina Group, the development cooperation in the LNG and Green Terminal businesses is also in line with Pertamina's commitment to implementing Environment, Sustainability, & Governance (ESG) in order to maintain business sustainability in the future," concluded Robert.

For your information, PT Pertamina International Shipping has set a revenue target of up to US$4 billion in 2027.

The target was set after the transformation process of Subholding Integrated Marine Logistics was successfully completed.

Pertamina International Shipping (PIS) Business Development Director Wisnu Medan Santoso said, to achieve this target, his party had made improvements in various lines.

He added, PIS carried out efficiency in shipping and shipping cost operational activities, improved performance to minimize transport losses, expanded markets through synergies between Pertamina's subsidiaries, through strategic partnerships, and carried out investment activities both organic and inorganic.

"The successful restructuring of PIS to become Pertamina's Subholding Integrated Marine Logistics is a key driver towards a world-class integrated marine logistics company. Therefore, full support from all PIS employees is needed to realize the revenue aspiration of US$4 billion in 2027," said Wisnu.