State-owned energy holding company Pertamina has started a long-term investment program worth Rp 36 trillion (US$2.5 billion) to strengthen its downstream business, with a focus on constructing infrastructure for fuel and liquefied petroleum gas (LPG) distribution across the country.

Pertamina supply chain and infrastructure director Gandhi Sriwidodo said in Sikka regency, East Nusa Tenggara, on Monday that some projects had been completed, while others were under construction or still being planned.

“The main objectives of the projects is to strengthen the nation’s energy sovereignty, support the government’s single fuel price program, the transition from kerosene to LPG in eastern Indonesia and to support inter-island connectivity,” Gandhi said as reported by kompas.com.

Gandhi was in Maumere, Sikka regency, to attend a groundbreaking ceremony for the construction of a fuel terminal.

He explained that of the Rp 36 trillion allocated for the program, Rp 20 trillion would be used to finance the construction of 29 strategic projects, consisting of fuel terminals, pipe network projects, LPG terminals, the repair and development of additional facilities at ports as well as the construction of fueling depots for airplanes.

Gandhi said Pertamina had spent Rp 4.9 trillion to construct 10 fuel terminals and Rp 10 trillion to finance 12 LPG terminals.

“For eastern Indonesia, Pertamina will construct four pressurized LPG terminals in Bima, Kupang, Wayame and Jayapura,” he said, adding that the development of the facilities aimed to improve the efficiency of LPG distribution, particularly by eliminating the use of floating storage and offloading (FSO). (bbn)