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Pertamina adds 44 biodiesel terminals
State oil and gas company Pertamina is preparing 44 fuel terminals in areas across Indonesia that will channel vegetable oil-based diesel fuel
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tate oil and gas company Pertamina is preparing 44 fuel terminals in areas across Indonesia that will channel vegetable oil-based diesel fuel.
Pertamina corporate communication vice president Ali Mundakir said in a statement in Jakarta on Wednesday that the 44 new facilities would supplement an existing 33 biodiesel terminals.
'Construction on most of the terminals has been completed. In eastern Indonesia, all of the terminals are targeted for completion by the end of June,' he said as quoted by Antara news agency.
Nineteen of the 44 terminals will be located in Sumatra, eight in Kalimantan, seven in Java, six in Sulawesi, two in Papua, one in Bali and one in East Nusa Tenggara. Of the total existing 33 terminals, 18 are located in Java, nine in Sumatra, four in Kalimantan and two in Bali.
Along with the government's directive, Ali said Pertamina would still be using the benchmark price provided by Mean of Platts Singapore (MOPS) with a freight on board (FOB) mechanism.
He said the FOB mechanism would help producers hampered by high transportation costs in distributing fuel to eastern Indonesia regions, which had low demand for biodiesel.
'For the transportation costs, we require that they should not exceed Pertamina's diesel transportation costs,' said Ali.
Pertamina will hold the third-stage procurement tender of fatty acid methyl ester (FAME) for an annual supply of 850,000 kiloliters from March to April.
In the first two stages of the tender, Pertamina confirmed a supply of 2.4 million kiloliters of FAME out of a total need of 5.3 million kiloliters within two years.
In 2013, Pertamina channeled 27.7 million kiloliters of biodiesel, 1.1 million of which were in the form of FAME. (ebf)
