economy

PIS Strengthens LPG Transportation Business By Partnering With A Leading Global Partner

PT Pertamina International Shipping (PIS) has signed a cooperation agreement with B International Shipping and Logistic DMMC (B Shipping), a global shipping company, for the purchase and/or charter of Liquid Petroleum Gas (LPG) vessels.

The signing took place in Istanbul, Turkey, with PIS CEO YokiFirnandi and B Shipping CEO EminImanov. This two-year collaboration includes feasibility studies for vessel purchases and charter management to BGN, the parent company of B Shipping, which is also involved in LPG and global commodity trading.

PIS CEO YokiFirnandi stated that this cooperation is in line with the Ministry of State-Owned Enterprises' directive to unlock value or increase the value of PIS assets. "We encourage synergy with strategic partners to rejuvenate and strengthen our fleet for energy distribution throughout the country," said Yoki.

PIS and BGN have previously collaborated on the procurement of Very Large Gas Carriers (VLGC) Tulip and Bergenia in January 2024. Through this partnership, BGN has supported PIS as the largest LPG carrier in Southeast Asia.

Currently, the cooperation with B Shipping is being conducted to explore further opportunities and add value to PIS in LPG transportation. One of the discussions includes the concept and business model, including considering vessel acquisitions and charters, as well as vessel management.

Yoki explained that this cooperation is in line with PIS's strategic investment approach to new vessels while maximizing the benefits from existing assets. Currently, there are 419 VLGCs operating worldwide, with an average vessel age of 10.08 years.

"PIS has seven VLGCs with an average age of 3.42 years, providing more reliable operational advantages and complying with the latest regulations. We also implement a prudent fleet allocation strategy by considering the market situation and prices, whether it's owned, leased, or time charter-out, and maintain this investment practice for sustainable growth."

B Shipping is a subsidiary of BGN based in Dubai with a presence in over 24 locations in various countries. Through maritime services, logistics, technical shipping, and smart solutions, B Shipping manages BGN's maritime assets and other partners to support global energy and physical commodity trading for BGN. BGN has been operating in 23 locations for 80 years, including Casablanca, Doha, Dubai, Geneva, Rotterdam, Jakarta, and Singapore.

EminImanov, CEO of B Shipping, emphasizes the importance of strategic partnership with PIS, saying, "This journey started four or five years ago when we decided to support Pertamina International Shipping in terms of international trade, and we continue to strengthen our relationship last year.

Currently, we have become partners in the shipping field, and I believe there will be many more in the future. I believe that the only thing that can help us achieve our common goals is friendship and trust, so I am confident that there will be many more collaborations in the future."

This collaboration also explores the potential partnership in the energy transition era, including the transportation of LPG and petrochemicals. Data from the Ministry of Energy and Mineral Resources shows that LPG consumption in Indonesia reached 8.7 million tons in 2023, an increase of 1.73% compared to 2022 or the highest in the last decade. On the other hand, internal analysis from PIS shows the potential growth of petrochemical cargo in Indonesia reaching a CAGR of 1.3 times from 2019 to 2030.

Yoki is optimistic that this collaboration will strengthen PIS's position in the global market. "The signing of this agreement is an important momentum for both companies to face challenges and opportunities in the future," Yoki concluded.