NYK Signs a LNG MOU with Indonesian Oil Company

BY Tiya Chatterji 27.Nov.2019

Japanese shipping giant Nippon Yusen Kaisha (NYK) has signed a memorandum of understanding with the unit of Indonesian state-owned oil and gas company Pertamina’s unit, Pertamina International Shipping, for energy transportation.

The agreement will focus on meeting energy demand in Indonesia, NYK Lines said, which has 32.1mn t/yr of LNG export capacity across three projects. Pertamina holds a majority stake in the country's 22.5mn t/yr Bontang liquefaction facility. NYK said in its statement that the demand for energy transportation, especially liquefied natural gas (LNG), is expected to increase in Indonesia. In order to address this demand, Pertamina, the largest oil and natural gas corporation in the state, and NYK have agreed to collaborate.

Indonesia is seeking to import LNG from 2025, as domestic gas production slows owing to receding reserves, against expected increases in energy demand. The country had planned to begin importing LNG from 2019, but a reappraisal of its remaining gas reserves is set to allow Indonesia to remain an LNG exporter for another six years, the energy ministry said last year.