economy

Teaming Up With BGN, PIS Is Ready To Construct And Add 2 New VLGC Ships

PT Pertamina International Shipping (PIS) has once again signed a partnership with a global partner to increase the fleet of giant LPG tanker ships or Very Large Gas Carriers (VLGC).

This time, PIS is collaborating with one of BGN's business units, an international commodity trading company that focuses on the development and operation of new liquid petroleum gas (LPG) carrier ships together.

The partnership signing took place in Istanbul, Turkey, by PIS CEO Yoki Firnandi and BGN Trading CEO Emin Imanov on July 1, 2024, witnessed by BGN Group CEO Rüya Bayegan. In this partnership agreement, both parties will form a joint ownership structure with ship delivery and leasing services provided by BGN on a long-term basis.

PIS CEO Yoki Firnandi appreciates the continuation of the partnership between the two parties in recent times. "BGN is a strategic partner of PIS and the Pertamina Group in supporting Indonesia's energy resilience.

Last year, we signed the first agreement in Abu Dhabi. Now, we are here to sign another agreement for co-owning two VLGC units that will be delivered in 2027. We are pleased to support and strengthen the cooperation between the two companies."

The two new VLGCs are planned to have a capacity of 88,000 m³, dual-fuel engines that can operate on oil and LPG. Each ship has a deadweight tonnage (DWT) of around 55,000 MT with a draft of about 12 meters, and a length of around 230 meters. The ships will be built by the world's largest shipbuilder, HD Hyundai Heavy Industries Co Ltd.

To realize this partnership, both parties are currently exploring the establishment of a new joint venture company or utilizing an existing company for the joint ownership of VLGCs.

Yoki mentioned that the current operations of PIS contribute to Indonesia's above-average performance in the Global Green Security Index, especially in energy distribution, energy security, and accessibility. With ongoing expansion, he believes that cooperation with BGN is the right step in advancing the national energy resilience vision.

Pertamina Group's CEO Nicke Widyawati, who was also present at the signing of the collaboration, sees this partnership as a way to strengthen the company's operational capabilities. "Not only that, we also believe that this will expand new markets and cargo portfolios for PIS. This initiative is equally important as expanding and implementing technology to support Pertamina's environmental sustainability program."

BGN's Group CEO Rüya Bayegan added, "As a growing multi-commodity trader that develops and maintains solid partnerships, we are proud to enhance our mutually beneficial cooperation with Pertamina. BGN continues to play a key role in delivering LPG and other energy commodities that can meet global demand and drive the energy transition."

PIS and BGN had previously collaborated on the procurement of VLGC Tulip and Bergenia in January 2024. This collaboration made PIS the largest LPG carrier in Southeast Asia. Through this latest partnership, PIS aims to improve the efficiency and capacity of LPG transportation.

BGN Trading's CEO Emin Imanov also warmly welcomed the continuation of collaboration between the two parties, "I believe that the partnership between these two companies can contribute to expanding and strengthening the relationship between both companies."

Tag: LPG PIS PT Pertamina International Shipping VLGC