Strengthening LPG Transportation Business with Global Partners
In a groundbreaking move for the LPG transportation industry, PT Pertamina International Shipping (PIS) has signed a collaboration agreement with B International Shipping and Logistic DMMC (B Shipping), a global shipping company specializing in Liquid Petroleum Gas (LPG) vessel purchases and charters. The signing took place in Istanbul, Turkey, with PIS CEO Yoki Firnandi and B Shipping CEO Emin Imanov at the helm.
Unlocking Value and Enhancing Fleet
The two-year partnership aims to enhance the feasibility study for vessel purchases and charter management to BGN, the parent company of B Shipping and a global LPG and commodity trading firm. CEO Yoki Firnandi emphasized that this collaboration aligns with the Ministry of State-Owned Enterprises’ directive to unlock PIS’s value and strengthen their fleet for energy distribution nationwide.
PIS and BGN have previously collaborated on acquiring Very Large Gas Carriers (VLGC) Tulip and Bergenia in January 2024, establishing PIS as the largest LPG transporter in Southeast Asia with BGN’s support.
Strategic Investments for Growth
The current partnership with B Shipping aims to explore further opportunities and add value to PIS in LPG transportation. Discussions include business concepts, acquisition and charter vessel considerations, and vessel management to strategically invest in new vessels while maximizing existing assets.
Yoki highlighted PIS’s operational advantage with seven VLGC vessels averaging 3.42 years old, ensuring reliability and compliance with current regulations. By maintaining a prudent fleet allocation strategy based on market conditions, PIS aims for sustainable growth and operational excellence.
Future Prospects and Energy Transition
B Shipping, a Dubai-based subsidiary of BGN with a global presence, emphasizes strategic partnerships in maritime services, logistics, technical shipping, and smart solutions to support global energy and commodity trade. CEO Emin Imanov stresses the importance of the longstanding partnership with PIS, envisioning continued collaboration in shipping and beyond as the energy transition era unfolds.
This collaboration also explores potential partnerships in the energy transition era, focusing on LPG and petrochemical transportation. With Indonesia’s LPG consumption reaching 8.7 million tons in 2023, a 1.73% increase from 2022, and PIS’s internal analysis projecting a 1.3x growth potential in petrochemical cargo from 2019 to 2030, both companies are poised for market expansion.
Yoki expressed optimism that this agreement marks a significant milestone for both companies to navigate future challenges and opportunities, underscoring the importance of mutual trust and friendship in achieving shared goals. The signing of this agreement serves as a pivotal moment for PIS and B Shipping to strengthen their global market position and embrace the future together.
