NYK and Pertamina ink LCO2, LNG, ship management deal

Japan’s Nippon Yusen Kabushiki Kaisha (NYK) inks a memorandum of understanding (MoU) with PT Pertamina International Shipping, a marine logistics subsidiary of Pertamina, a state-owned oil and gas company in Indonesia, to collaborate in the field of liquefied carbon dioxide (LCO2) and liquefied natural gas (LNG) and jointly establish a ship-management company.

The two parties will work together in the field of LCO2 and LNG transportation, which is a priority for the Indonesian government and is expected to grow in the future.

According to Indonesia’s ministry of energy and mineral resources, Indonesia’s storage capacity has the potential to reach 572 billion tons.

Meanwhile, by jointly establishing a ship-management company, NYK plans to create work and training opportunities for the seafarers in the country.

The deal offers the opportunity to NYK to collaborate with Pertamina to meet the demand for LNG transport in Indonesia, where further expansion of LNG production and consumption is expected.

The giant Japanese owner said the aim of this strategic partnership is to collaborate in obtaining business opportunities through assessments and feasibility studies for the transboundary transportation of LCO2 to and from Indonesia.

Furthermore, the deal on the establishment of a ship-management company offers the opportunity to 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.

The Indonesian government plans to become the largest storage operator in Asia by attracting demand for CO2 landfills from the surrounding areas.

As NYK explains, this MoU is intended to contribute to the goal from the perspective of LCO2 transportation.