Pertamina to build fuel terminal in Riau Islands

State oil and gas firm PT Pertamina announced on Tuesday that it would set up a new fuel terminal on Sambu island, Riau Islands, with a total capacity of 300,000 kiloliters (kl) in a bid to strengthen the national fuel stock.

The terminal, worth US$50 million, would consist of storage with a capacity of 300,000 kl and three docks for vessels with a maximum capacity of 100,000 dead weight tons (DWT), the company’s spokesperson, Mochamad Harun, reported. The terminal would also have offices and safety facilities, he added.

“The construction of the facilities is expected to be completed in 2013. The presence of the terminal will really help us in strengthening the security of national fuel stock,” he said in a press statement.

The construction of the terminal followed up on an agreement between Pertamina and Pertamina Energy Services (PES), Pertamina’s subsidiary, which was signed by Pertamina president director Karen Agustiawan and PES managing director Nawazir on Dec. 22.

Harun explained that the terminal would serve several activities, including receiving fuel material, storing fuels, blending and distributing the fuel.

In addition to strengthening the national fuel stock, the Sambu terminal was also expected to optimize the potential of Sambu Island as a fuel business hub in Southeast Asia. The terminal can supply fuels to neighboring countries requiring fuel.

According to the company’s data, Pertamina distributes 60 million kl annually. It has six refineries, more than 130 tankers, 160 fuel terminals, 2,688 tank trucks, over 4,800 fuel stations and 15,000 employees.

Pertamina’s marketing and business director said earlier that distributing fuels in Indonesia was a very challenging job. The company had to face many constraints, such as traversing Indonesia’s widespread archipelago, the insufficient depth of rivers and estuaries, bad weather and highlands.

The six refineries have a total capacity to process 1.03 million barrels of oil per day, but produce only 676,000 barrels of fuel. The refineries are located in Dumai, Riau, with a capacity of 170,000 bpd, Plaju in South Sumatra (118,000 bpd), Cilacap in Central Java (348,000 bpd), Balikpapan in East Kalimantan (260,000 bpd), Balongan in West Java (125,000 bpd) and Kasim in West Papua (10,000 bpd).

On Dec. 24, Pertamina announced that the country’s fuel stock was 3.67 million kl, comprising 1.3 million kl of premium, 1.6 million kl of diesel fuel, 312,000 kl of kerosene, 90,000 kl of Pertamax, 29,000 kl of Pertamax Plus and 324,000 kl of aviation fuel. For liquefied petroleum gas (LPG), the stock was 179,000 metric tons.

The Energy and Mineral Resources Ministry said earlier that Indonesia needed to build at least three more oil refineries with the capacity of 250,000 barrels each to stop fuel imports and strengthen the security of fuel supply.