NYK and Pertamina Secure Agreement for LCO2, LNG, and Ship Management

On June 20, NYK and PT Pertamina International Shipping ("PIS"), a marine logistics subsidiary of Indonesia’s state-owned oil and gas company PT Pertamina (Persero) ("Pertamina"), signed a memorandum of understanding (MoU) to collaborate in the fields of liquefied carbon dioxide (LCO2) and liquefied natural gas (LNG), and to jointly establish a ship-management company. The signing ceremony at Pertamina's headquarters in Jakarta, Indonesia, was attended by Pertamina President Nicke Widyawati, PIS President Yoki Firnandi, and NYK Managing Executive Officer Hironobu Watanabe.

NYK aims to establish a robust partnership with PIS in the transportation of LCO2 and LNG, aligning with the Indonesian government's priorities and the anticipated growth towards a low-carbon and decarbonized society. Additionally, by jointly setting up a ship-management company, NYK intends to ensure stable ocean transportation and create training and employment opportunities for seafarers in Indonesia.

Points of MoU

1. Agreement on LCO2 Transportation

Following the strategic partnership agreements forged in 2022, NYK and PIS have committed to jointly explore business opportunities through assessments and feasibility studies for transboundary LCO2 transportation to and from Indonesia. Their objective is to offer LCO2 transportation services to storage operators and CO2 emitters like Pertamina.

2. Agreement on LNG Transportation

NYK and PIS have agreed to commence comprehensive discussions regarding joint ownership of LNG carriers. Leveraging NYK’s extensive 40-year experience in owning and operating LNG carriers, the companies will collaborate to meet the increasing demand for LNG transport in Indonesia, where growth in LNG production and consumption is anticipated.

3. Agreement on Establishing a Ship-Management Company

NYK and PIS have reached an agreement to jointly establish a ship-management company. This initiative aims to strengthen their partnership and provide advanced ship-management services to meet the anticipated rise in demand for maritime transport services within Indonesia.

Indonesia, a leading producer of oil and natural gas in Southeast Asia, is actively expanding its CO2 storage infrastructure. According to Indonesia’s Ministry of Energy and Mineral Resources, the country's storage capacity, including suitable saline aquifers, is projected to reach 572 billion tons, exceeding global annual carbon storage needs by the end of 2024. The Indonesian government aims to become Asia's largest storage operator by attracting CO2 storage demand from neighboring regions. This MoU aims to support this goal by focusing on LCO2 transportation. With increasing demand for LNG carriers, there is also a growing need for LCO2 carriers to transport liquefied CO2 from storage sites to consumption areas.

NYK has prioritized the training of Indonesian seafarers as part of its long-term strategy, which includes appointing Indonesian captains and chief engineers to LNG carriers operated by NYK. With the joint establishment of the ship-management company, NYK remains committed to further enhancing the skills of local seafarers, fostering employment opportunities, and contributing to the growth of Indonesia’s maritime industry.