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Indonesia to build oil storage facility near Singapore
The energy minister says the government is looking at building an oil storage facility on an island near Singapore, from which the country imports 60 percent of its fuel, to shore up strategic reserves amid declining output.
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An offshore rig operates on April 2, 2023, in an oil and gas field managed by Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) off the coast of Indramayu, West Java. (Antara/Aditya Pradana Putra)
T
he government is mulling over a plan to build an oil storage facility on an island adjacent to Singapore, according to Energy and Mineral Resources Minister Bahlil Lahadalia, as part of the country’s pursuit of energy sovereignty.
Bahlil said on Wednesday that an oil storage facility would provide a 30- to 40-day reserve supply and “accommodate various types of oil” for state energy giant Pertamina to buy at low prices.
“Talking about geopolitics, if our country were at war, our oil reserves would last only 21 days,” said the minister, who is also Golkar Party chairman, after attending an event in Jakarta involving Golkar lawmakers, as quoted by Antara.
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At the same event, Bahlil, a former investment minister, also said he was confused as to why the country imported 60 percent of its fuel from Singapore.
The island state has no hydrocarbon resources and imports crude oil for its refining and petrochemical industries, according to data from the United States Energy Information Administration (EIA). The data also show that Singapore imports over two-thirds of its crude from the United Arab Emirates, Qatar, Saudi Arabia and Kuwait.
The EIA’s 2021 report states that the city-state primarily shipped its refined petroleum products, including fuel, to Malaysia, Indonesia, Australia and China.
