Pertamina among Asian giants poised for massive fleet expansion

Pertamina International Shipping (PIS), the shipping arm of the nation’s top energy producer, has announced its business plan, which explains the need to expand the company fleet to 500 ships – 200 owned and 300 chartered in – by 2034.  It aims to triple revenues to US$8.9Bn over the coming years. 

The plan for fleet renewal is not particularly new. In September 2022, chief executive Yoki Firnandi publicly stated the company has a determined US$33.0Bn fleet renewal and diversification plan, with particular emphasis on liquefied petroleum gas (LPG) ships and liquefied natural gas (LNG) carriers until 2027.

Earlier this year, PIS acquired two new VLGCs, taking its fleet to seven VLGCs, positioning it as the largest VLGC fleet owner in southeast Asia. In February 2024, PIS ordered two 23,000-m³ dual-fuel LPG ships from HD Hyundai Weipu, which will be delivered by October 2026.

In January 2024, energy trader BGN placed an order with HD Hyundai Heavy Industries to build two VLGCs, which are expected to be delivered in 2027 and in July, BGN followed that up with another pair of VLGC orders from HD Hyundai Heavy Industries. All four ships will be operated by a natural gas shipping company jointly established by BGN and PIS.

More tankers are also part of Pertamina’s fleet renewal plan. At the start of 2024, PIS ordered 15 medium range (MR) tankers, worth more than US$700M, with HD Korea Shipbuilding & Offshore Engineering. The vessels will be built by a subsidiary and delivered successively before November 2026. 

In all, PIS currently owns 120 of the 320 ships in its fleet.

Other Asian lines are also making their bets on massive expansion plans. 

Chinese container line COSCO Shipping expects to add nearly 80 vessels over the next two years. Last month, the company ordered a dozen 14,000-TEU ships worth US$2.2Bn at a sister firm in Jiangsu province, rounding off one of the busiest months for global container ship orders ever.

The ships, which will feature substantial reeefer slots, will be deployed on Asia-Latin American routes.

And as Riviera reported earlier this month, COSCO added a second mega newbuilding contract for 42 bulk carriers, valued at more than US$2.0Bn.

Korea’s Hyundai Merchant Marine (HMM) also revelaed a mid-to-long-term plan, earmarking US$17.4Bn towards adding more fuel-efficient vessels by the end of the decade. In particular, HMM will greatly expand its bulk business, extending the fleet to 110 vessels from the current 36 vessels.