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Iranian firm NIOC to supply Pertamina with LPG
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Iranian government-owned National Iranian Oil Company (NIOC) has sealed a head of agreement with state-owned energy giant Pertamina on the purchase of 14 cargoes of liquefied petroleum gas (LPG) with a total volume of 600,000 metric ton (MT). (Courtesy of http://www.nioc-intl.ir//-)
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tate-owned energy firm Pertamina has signed a head of agreement for the purchase of 14 cargoes of liquefied petroleum gas (LPG) with a total volume of 600,000 metric ton (MT) from the Iranian government-owned National Iranian Oil Company (NIOC).
The agreement was signed in Tehran, Iran, on Monday local time between Pertamina’s senior vice president of integrated supply chain Daniel Syahputra Purba and NIOC vice director for international affairs Moradi.
Energy and Mineral Resources Minister Sudirman Said, who attended the signing ceremony, applauded the strengthening economic cooperation between the two countries in the energy sector.
"This is our third visit to Iran. I am happy that economic and business relations between Indonesia and Iran are strengthening. This agreement is a milestone," Sudirman stated in a press statement.
Pertamina spokeswoman Wianda Pusponegoro added that the initial delivery of two cargoes of LPG will be conducted in the fourth quarter, while the remaining 12 cargoes would be delivered in 2017.
"This agreement is very strategic considering that LPG demand in Indonesia is increasing from year to year," Wianda said, underlining Pertamina’s estimation of LPG consumption in Indonesia to reach 7.5 million MT in 2016, up by 13.6 percent from the previous year.
"The supply from Iran will enhance national LPG supply resiliency," she added.
In addition to the LPG purchase agreement, Pertamina and the NIOC will conduct further discussion on cooperation in the upstream oil sector. The Iranian company has expressed interest in supplying crude oil to Pertamina.
Previously on May 23, Pertamina and Saudi Aramco signed a memorandum of understanding (MoU) to upgrade the capacity of the Cilacap refinery, which is expected to be completed within six years. (ags)
