Pertamina's Shipping Unit Plans to Double Tanker Fleet, Expand LNG Capacity Over 10 Years

(Reuters) — The shipping unit of Indonesia's state energy firm Pertamina plans to double its fleet of 320 tankers in the next 10 years, the unit's CEO Yoki Firnandi told the Gastech conference in Houston on Thursday.

The expansion, aimed at reducing the average age of the company's fleet, is set to include investment in vessels to transport liquefied natural gas (LNG).

Indonesia is a major producer and exporter of LNG. It exported some 16 million metric tons last year or about 5% of the world's total LNG exports.

Pertamina International Shipping (PIS) also is trying to use cleaner fuels for its tankers and follow efficient practices for ship hull cleaning and propulsion, Firnandi said.

Further reductions in emissions in the shipping industry are largely expected to come from the use of alternative fuels, he added.

"There will be a lot of homework to do," Firnandi said referring to decarbonization in the shipping industry, which will require collaboration following the IMO 2020 regulation that changed the world's standards for maritime fuel.

In 2021, PIS signed an agreement for a strategic partnership with Japan's shipping company Nippon Yusen Kaisha9101.T with potential collaboration for LNG logistics business.

Last year, PIS secured a $185 million syndicated loan to fund investment in its fleet and infrastructure.

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