NYK, Pertamina International Shipping to collaborate on LCO2, LNG transportation

Japanese shipping company NYK and Pertamina International Shipping (PIS), a marine logistics subsidiary of Indonesia’s Pertamina, have signed a memorandum of understanding (MoU) to collaborate in the field of liquefied carbon dioxide (LCO2) and LNG transportation and to jointly establish a ship-management company, NYK announced on June 26.

Based on the partnership agreements signed in 2022, NYK and PIS have agreed to collaborate on obtaining business opportunities through assessments and feasibility studies for the transboundary transportation of LCO2 to and from Indonesia. The two companies aim to offer LCO2 transportation services for storage operators and CO2 emitters, including Pertamina.

The parties have also agreed to begin full-scale discussions on the joint ownership of LNG carriers. Additionally, NYK and PIS have agreed to jointly establish a ship-management company. Through this initiative, NYK aims 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 and is actively investing in the construction of CO2 storage facilities. According to Indonesia’s Ministry of Energy and Mineral Resources, the country's storage capacity, including saline aquifers suitable for massive storage, has the potential to reach 572bn tonnes.

“This MoU is intended to contribute to the goal from the perspective of LCO2 transportation. Together with the demand for LNG carriers, the demand for LCO2 carriers is expected to grow because they are essential for transporting liquefied CO2 from storage sites to consumption areas,” NYK said.

Additionally, NYK has been focusing on the training of Indonesian seafarers through a long-term plan, including appointing Indonesian captains and chief engineers to NYK-operated LNG carriers. Through the joint establishment of the ship-management company, NYK will continue training high-quality seafarers and creating employment for them, as well as contributing to the development of the maritime industry in Indonesia.