Dubai energy trader BGN has inked a landmark agreement with Indonesia’s state-owned PT Pertamina International Shipping (PIS) for collaboration on gas vessel transportation.
The move is expected to reinforce BGN’s position as an emerging maritime asset player in the LPG market and strengthen LPG supply in Indonesia.
The comprehensive agreement charts the course for joint ownership of Very Large Gas Carrier (VLGC) vessels, LPG cargo transportation, and vessel leasing, laying the groundwork for a long-lasting partnership. The first two vessels under this collaboration could be operational as early as the first quarter of 2024.
“BGN excels at strong business partnerships, and we are pleased to move forward with this new arrangement with Pertamina International Shipping. BGN’s collaboration with Pertamina International Shipping will further enhance our maritime fleet to facilitate our growing energy trading business, cementing our position as a significant LPG trader, as well as supporting the Indonesian energy system,” CEO BGN, Rüya Bayegan , said.
“The collaboration on VLGC and LPG cargo businesses with BGN is a tangible expression of PIS’s commitment to expand LPG commodity businesses and increase PIS’s share in its non-captive market, to strengthen national energy security,” CEO of PIS Yoko Firnand i said.
The signing took place at Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2023, where this year’s theme is “Decarbonising. Faster. Together.” It was hosted at the Indonesian Pavilion led by the Special Task Force for Upstream Oil and Gas Business Activities.