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Pertamina ups biofuel quota, signs on 11 producers
In the mix: Attendants at a gas station belonging to state-owned oil company Pertamina, located on Jl
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In the mix: Attendants at a gas station belonging to state-owned oil company Pertamina, located on Jl. Abdul Muis in Jakarta, offer blended fuel to customers in this file photo.(JP/Nurhayati) (JP/Nurhayati)
I
span class="inline inline-center">In the mix: Attendants at a gas station belonging to state-owned oil company Pertamina, located on Jl. Abdul Muis in Jakarta, offer blended fuel to customers in this file photo. (JP/Nurhayati)
State-owned oil and gas
giant PT Pertamina has projected an absorption of 5.14 million
kiloliters (KL) of fatty-acid methyl ester (FAME) ' a derivative of palm
oil ' next year, to meet the mandated 20 percent biofuel blend in its
projected 26 million KL of biodiesel.
The projection represents a
five-fold increase on Pertamina's current FAME absorption of 966,785 KL
which supplies its current biodiesel output of 5.98 million KL. Thus,
the company has signed supply contracts with 11 FAME biofuel producers
to procure 1.84 million KL of FAME to cover its needs up until April
next year.
Pertamina's vice president of corporate communications
Wianda Pusponegoro said the signing was a concrete step toward
complying with the government's mandatory biodiesel (BBN) policy. The
policy mandates a 15 percent biofuel blend this year and a 20 percent
blend starting next year. A '15 percent blend' means fuel made up of 15
percent FAME and 85 percent petroleum.
"A sustainable supply of
FAME is very important for supporting the government's mandatory biofuel
program," said Wianda in a press statement on Friday.
From 5.14
million KL of FAME being purchased next year, a total of 2.6 million KL
will be used for public fuel as part of Pertamina's public service
obligation (PSO) program, 1.26 million KL will be used by power plants
and 1.12 million KL will go toward non-PSO fuel.
Wienda explained
that Pertamina's strategic synergy with other stakeholders in the
biofuel program, both the government and FAME producers in Indonesia, is
indispensable.
"FAME absorption is believed to be highly
beneficial to all parties, because this is an important step for
Indonesia in reducing its dependency on imported oil and creating jobs
in the downstream oil industry," she added.
Currently, Pertamina
has distributed FAME biodiesel with a blending portion of 15 percent.
The total FAME absorption up until Oct. 31 was approximately 300,000 KL.
(ags)(+)
