A subsidiary of State-owned energy company Pertamina, PT Pertamina International Shipping (PIS), has struck a deal with Japanese shipping company Nippon Yushen Kabushiki Kaisha (NYK) Group to cooperate in liquid carbon dioxide (CO2) and liquified natural gas (LNG) transportation and ship management.
This agreement is part of the commitment to support Indonesia’s national agenda as a leader in carbon capture and storage (CCS) and emissions reduction. The MoU was signed at Pertamina’s head office and attended by Pertamina President Director Nicke Widyawati, PIS CEO Yoki Firnandi, and NYK Managing Executive Officer Hironobu Watanabe.
“The signing is a follow-up to the strategic partner cooperation that has been ongoing between PIS and NYK since December 2022. This is the beginning of the journey and the most important thing is how we can accelerate business implementation so that it can become a new revenue channel for PIS,” Nicke Widyawati said in a statement on Thursday, June 27, 2024.
PIS CEO Yoki Firnandi, emphasized the importance of collaboration and PIS’s readiness to play an important role in CCS transportation with NYK.
“This MoU with NYK drives PIS to grow beyond Indonesia through long-term partnerships and close relationships with our shareholders. This MoU also symbolizes PIS’s readiness to become a leader in CCS transport and logistics aggregators in the region. We expect this partnership to foster the transfer of NYK’s technology and expertise in carbon emission reduction.” Yoki said.
PIS will focus on the transport chain in the CCS process which requires specialized vessels and carbon storage facilities. In addition to supporting the government, this collaboration is also in line with Pertamina Group’s commitment to achieve Net Zero Emissions by 2060 through CCS technology and various other emission reduction initiatives across companies and subsidiaries.
NYK Managing Executive Officer Hironobu Watanabe said that the cooperation with PIS is very important for NYK, considering that PIS is one of the important players in the Indonesian shipping industry. “We have often discussed the cooperation plan, and it is time to turn the agreement on paper into a real business,” Watanabe said.
Through this agreement, NYK and PIS will collaborate and review business opportunities and feasibility studies for the transport and storage of liquid CO2 to and from Indonesia. In terms of the LNG business, both parties agreed to collaborate in the ownership of the LNG Carrier. Meanwhile, for the ship management business, NYK and PIS will form a joint venture, where NYK will provide training to increase the capacity of seafarers to compete globally.
“The collaboration between NYK and PIS sets a new standard in the maritime industry in the global effort to reduce carbon emissions and promote sustainable development. As the world moves towards a greener future, the PIS and NYK partnership exemplifies the important role of innovation and cooperation in achieving sustainable environmental goals.” Yoki said.
