Indonesian company Pertamina International Shipping (PIS) has signed an agreement with energy company BGN for the joint ownership of Very Large Gas Carrier (VGLC) vessels as it continues to expand its position in the maritime industry.
The agreement, signed during the 2023 Abu Dhabi International Petroleum Exhibition and Conference, also covered a large range of prospective collaborations, including liquefied petroleum gas (LPG) cargo transportation and vessel leasing.
PIS CEO Yoki Firnandi said: “The collaboration on VLGC and LPG cargo businesses with BGN is a tangible expression of PIS's commitment to expand LPG commodity businesses and increase PIS's share in its non-captive market to strengthen national energy security.”
The first two vessels under the agreement are expected to be delivered as early as the first quarter of 2024, bringing PIS’ fleet up to 99 vessels and further growing BGN’s own fleet of LPG carriers used to facilitate its trading operations.
BGN CEO Ruya Bayegan said: “BGN excels at strong business partnerships and we are pleased to move forward with this new arrangement with Pertamina International Shipping (PIS).
“BGN's collaboration with PIS will further enhance our maritime fleet to facilitate our growing energy trading business, cementing our position as a significant LPG trader as well as supporting the Indonesian energy system.”
Alongside being a supplier to Indonesia, oil, gas and energy provider BGN also has a presence in 23 countries around the world, including the US, Netherlands, Singapore and the UAE.
PIS is a subsidiary of the Indonesian state-owned oil and gas business Pertamina and has previously seen investment from Japan’s NYK Line into its energy transportation operations.
The agreement also bolsters Indonesia’s wider role in the maritime industry and follows a recent agreement between DP World and the Maspion Group to construct a new container terminal in Gresik, East Java.
