VLGC adds, Pertamina is still finalizing investment in LNG ships

Two additional VLGC tankers were added to transport LPG and petrochemical products.

PT PERTAMINA (PERSERO)

Activities of one of the PT Pertamina International Shipping (PIS) vessels, Sub Holding Integrated Marine Logistics Pertamina. PT PIS operates in the energy transportation business, such as crude oil, fuel oil (BBM), LPG, and ammonia.

JAKARTA, KOMPAS — PT Pertamina International Shipping is still finalizing investment plans ships carrying liquefied natural gas or LNG, which has a segmented market and has not growing significantly in Indonesia. The addition of ships will include giant gas tankers (very large gas carrier /VLGC) which will be optimized for transporting LPG and petrochemical products.

Corporate Secretary Pertamina International Shipping (PIS) M Aryomekka Firdaus, Friday (10/5/2024), said that LNG requires its own type of transport vessel, namely LNG carrier (LNGC). Since 2023, PIS plans to invest in LNGC, but this has not been implemented.

"The LNG market is very segmented and in Indonesia its development is still limited. "Meanwhile for us at BUMN, investment must be accompanied by various very mature FID(final investment decision) considerations," said Aryomekka.

Also read: Pertamina International Shipping Plans to Buy LNG Ships

Indonesia actually has great potential in developing LNG, especially since in 2023, a number of jumbo gas sources were found, namely in the waters off East Kalimantan and the northern coast of Sumatra. Pertamina is involved in the development of the Masela Block in Maluku after partnering with Petronas following the purchase of Shell's participation rights in 2023. However, the project is only targeted to be completed by the end of 2029.

In the midst of investment plans for LNG carriers, PIS officially added twoVLGCs named Pertamina Gas Caspia and Pertamina Gas Dahlia, in Geoje, South Korea, Thursday (9/5/2024). The 300 meter long ship with a capacity of 91,000 cubic meters was produced at one of the largest shipyards in the world, namely Hanhwa Ocean, South Korea.

The problem of air pollution is not a new issue. The threat of air pollution to the community has been present for a long time. There is also abundant research evidence showing the danger of the impacts of air pollution. However, this has not yet led to significant efforts to control air pollution. As a result, residents are increasingly suffering in the face of air pollution. The two new VLGCs will be optimized for transporting LPG and petrochemical commodities, namely propylene and ammonia, and are intended for international trade routes. With the addition of these two new vessels, PIS now has 7 VLGC tankers. All seven are part of a total of 419 VLGC tankers currently sailing around the globe.

"Currently, 4 out of 7 VLGCs enter and leave Indonesia. (Meanwhile) 3 fulls were chartered by foreign companies and international cargo," said Aryomekka.

Energy security

Secretary of the Ministry of State-Owned Enterprises, Rabin Indrajad Hattari, stated that this addition will strengthen PIS's role in energy distribution in Indonesia. "The VLGC is not just a ship, but a testament to international collaboration, technological sophistication, and unwavering commitment to supporting Indonesia's energy resilience," he said in a press release on Thursday.

PIS's two new VLGCs are equipped with energy saving devices and shaft generators which can increase fuel efficiency. Apart from that, the ship is also equipped with environmentally friendly technology that can reduce acid rain (NOx) pollution. "The addition of VLGCs that are more environmentally friendly to support the energy transition and sustainable business," said PIS CEO Yoki Firnandi.

PT PERTAMINA INTERNATIONAL SHIPPING

A Pertamina very large gas carrier (VLGC) type tanker is visible.

The advantages of Pertamina Gas Caspia and Pertamina Gas Dahlia include the highest payload flexibility, up to 39 payload combinations. In addition, there are anti-hijacking accommodation facilities for the safety and comfort of the ship's crew. Specifically for the VLGC Pertamina Gas Dahlia, its management is directly handled by PIS and manned by 100 percent Indonesian crew.

Also read: Accelerating Natural Gas Infrastructure Development

As for the seven VLGC PIS tankers, they have an average age of 3.42 years. According to Yoki, this is a unique advantage in terms of the ships' operational quality being more reliable. In addition, new technology also makes PIS VLGCs more competitive.

The other five PIS VLGCs are Pertamina Gas 1, Pertamina Gas 2, Pertamina Gas Amaryllis, Pertamina Gas Tulip, and Pertamina Gas Bergenia.

Overall, PIS now has 102 fleets. Apart from VLGC, there are also VLCC and Suezmax, among others. Out of the total number, 60 ships operate in international routes.

PT Pertamina (Persero) Vice President Corporate Communication Fadjar Djoko Santoso said that VLGC Caspia and Dahlia, which have dual fuel technology and are environmentally friendly, are part of Pertamina's efforts to run a green business. Environmental, social and governance (environmental, social, and governance/ESG) continues to be implemented by Pertamina.