PT Pertamina International Shipping (PIS), a subsidiary of state oil and gas company PT Pertamina, has successfully collaborated with global oil and gas players to establish business cooperation. PIS signed a Memorandum of Collaboration (MoC) with Vitol Asia Pte Ltd of the Netherlands, which is one of world-class oil and gas companies.
As Subholding Integrated Marine Logistics, PIS is a shipping company that specializes in shipping oil across Indonesia. Some of the services that PIS provides are sea freight between ports, integrated offshore and onshore logistics services, and export and import cargo transportation. Other than Vitol, PIS has also collaborated in lending ships with other renowned energy companies such as Malaysia’s Petroliam Nasional Berhad (Petronas).
Founded in Rotterdam in 1966, Vitol is an energy and commodities company that specializes in the trade and distribution of energy across the world. The company worked on renewable energy, transitional energy and crude oil and products. The company booked revenue of US$ 279 billion in 2021, shipped 367 million tons of crude oil & products in 2020 and traded 7.6 million barrels of crude oil every day.
Common interest in integrated logistics service
PIS CEO Yoki Firnandi signed the MoC with Vitol Asia CEO Mike Muller in Denpasar, Bali, on October 10, 2022. The signing was also attended by, among others, PIS Commercial Director Arief Sukmara and Fleet Director Muhammad Irfan Zainul Fikri as well as Vitol Chartering Manager Rob Scorey and Marketing Ameer Moshien.
“Hopefully, this collaboration will provide benefits for both parties. Of course, cooperation with strategic partners such as Vitol, is beneficial for the future development of PIS business, especially international business. It will help us have direct access to the cargo market and help build PIS capabilities so that we can be equivalent to other international shipping,” said Firnandi.
Vitol also welcomed this collaboration. The company showed an interest in PIS’ current business scope as an integrated marine logistics company. It does not only run the business of providing shipping services, but also the business of providing terminal services, ports, storage and others.
“We hope that the current agreement can be the beginning of a bigger [business] relationship. Moreover, we have more shipping demand than can be seen at this time. So, an agreement like this can be realized thanks to the performance and expertise of your workers and our colleagues, who are now with us. We are grateful and very appreciative,” said Muller.
Providing tankers
The agreements signed by PIS and Vitol include the rental of tankers for Clean Petroleum Products, Dirty Petroleum Products, Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) gas vessels with charter schemes based on time, time charters or spots.
PIS and Vitol also have a business partnership for ship supply services that will last until 2023.
Sukmara said with this agreement there was the potential for greater cooperation in the future with Vitol. “With this signing, it will be a trigger for PIS to continue to hunt for opportunities in the international market, to develop business with our capable fleet,” he added.
Rising energy shipping industry
Multiple sources have reported that the energy shipping industry is currently on the rise. A report from Clarkson research stated that the tanker market has ticked up significantly from 30-year lows last year. Clarkson is projecting a 65% increase in LNG shipments over the decade, while the rates of the LPG sector in 2023 remain healthy. THINK.ING forecast that energy product flows are expected to rebound and expand the most compared to last year, due to the resumed traveling and the lifting of COVID-19 restrictions in most of the world even though the effect of Russia’s invasion to Ukraine and releasing strategic oil reserves affect economic growth. LNG and LPG tankers are expected to benefit the most in relation to Europe’s effort to replace piped Russian natural gas.
