Pertamina aims to grow marine fuel sales in Malacca Strait

Indonesian state-owned oil and gas firm PT Pertamina is angling to take a greater share of the market for diesel and marine fuel oil (MFO) in the Malacca Strait after an expansion plan.

Media reports quoted Pertamina’s corporate communications vice president, Ali Mundakir as saying that the expansion of its large fuel terminal on Sambu Island in the Riau Islands, south of Singapore, would not only boost Pertamina’s fuel storage capacity but also enhance the firm’s competitiveness.

“It’s a competitive business, and so far our supplies have been limited,” he said. Pertamina senior vice president of shipping Suhartoko said total demand for diesel and MFO in the Malacca Strait stood at 42m kiloliters (kl) per year, while Pertamina was only able to supply 250,000 kl from its own production.

“Singaporean suppliers still control the largest portion of the market,” he noted, adding that Pertamina imported around 3m barrels of diesel per month from foreign suppliers.

The $94m expansion project would be carried out in three stages till 2018, Suhartoko said. Fuel storage capacity will be increased by 150,000 kl in the first stage, and by 600,000 kl in the final stage. The expansion will also add to the terminal’s docking capacity, increasing it from the current 40,000 dwt to 100,000 dwt.

Suhartoko said that this year, the terminal would be able to store between 400,000 kl and 600,000 kl of fuel, including diesel and gasoline.

“We see tremendous market potential that we can capitalise on, as Sambu is in a very strategic location,” he said.

Posted 17 February 2014

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Vincent Wee

Asia Editor, Seatrade Maritime News

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