On June 20, 2023, NYK and PT Pertamina International Shipping (PIS), a subsidiary of Indonesia’s state-owned oil and gas company PT Pertamina (Persero), signed a memorandum of understanding (MoU) focusing on liquefied carbon dioxide (LCO2) and liquefied natural gas (LNG) transportation. This agreement marks a significant step toward fostering a low-carbon and decarbonized society in Indonesia. The signing ceremony took place in Jakarta, attended by key officials from both companies, including Pertamina’s President, Nicke Widyawati, and NYK’s Managing Executive Officer, Hironobu Watanabe.
Key Points of the MoU
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LCO2 Transportation Collaboration: Following a strategic partnership founded in late 2022, NYK and PIS will collaborate on business opportunities related to transporting liquefied carbon dioxide (LCO2). This includes feasibility studies for transboundary transportation, catering to storage operators and major CO2 emitters.
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LNG Transportation Initiatives: The agreement involves discussions for joint ownership of LNG carriers, leveraging NYK’s extensive experience in this field. Indonesia is anticipating a rise in LNG production and usage, making this collaboration essential for meeting local demand.
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Ship-Management Company Establishment: Both companies aim to create a ship-management entity to enhance their partnership and advance ship-management services, addressing the expected growth in demand for vessels in Indonesia.
Background of the MoU
Indonesia stands as a major producer of oil and gas in Southeast Asia and is making significant investments in CO2 storage infrastructure. With the potential capacity of its CO2 storage facilities estimated at 572 billion tons, Indonesia aspires to become Asia’s foremost storage operator. This MoU aligns with the government’s objectives for LCO2 and LNG transportation, significantly contributing to the nation’s sustainability goals.
Moreover, NYK is dedicated to training Indonesian seafarers, emphasizing employment and skill development through the new ship-management company, which will further support Indonesia’s maritime industry.
Company Statements
Nicke Widyawati expressed pride in the MoU as a continuation of their strategic partnership, highlighting its role in advancing discussions for shared business goals. Yoki Firnandi emphasized the MoU’s significance for PIS’s growth potential, particularly in the LCO2 sector, underpinned by NYK’s expertise. Hironobu Watanabe noted the importance of collaboration in LCO2 transportation and the development of the maritime sector, reinforcing NYK’s commitment to supporting PIS and Indonesia’s green transition.
Implications for a Low-Carbon Future
The partnership between NYK and PIS is poised to play a crucial role in energy transition efforts in Indonesia, encompassing not only LNG but also the burgeoning field of carbon capture, utilization, and storage (CCUS). As the demand for both LNG and LCO2 transportation expands, the collaboration seeks to streamline operations and contribute substantially to environmentally friendly practices in the region.
This MoU signifies a robust commitment from both companies towards achieving a sustainable energy landscape, aligning with global trends aimed at reducing carbon footprints and promoting cleaner energy sources.
