Adaro eyes oil, gas transport business
Thursday, April 27 2017 - 04:13 AM WIB
Petromindo|Thomas
IDX-listed coal mining giant PT Adaro Indonesia Tbk is looking to enter oil, liquid natural gas (LNG), and liquefied petroleum gas (LPG) transport business in the future as part of diversification strategy of its logistics services business.
Adaro President Director Garibaldi Thohir said on Wednesday that the plan forms part of a 10-year diversification strategy of the company?s three business pillars including coal mining, power plant, and logistics.
?Going forward, our dream is for Adaro Logistics to not only serve coal,? he said.
Through subsidiary PT Adaro Logistics, the company provides various logistics and mining services, and operates a number of logistic facilities such as coal terminal, port, and barges. The company, for instance, operates a river port for coal logistics in Kelanis, Central Kalimantan Province, claimed to be one of the largest in Asia. ?Our river port is probably the largest in Asia because it has capacity of 50-52 million tons per year,? Garibaldi said.
The plan to enter the oil and gas transport business in the future comes following agreement made in 2015 with state-owned oil and gas firm PT Pertamina for the supply of 550,000 kilo liters of biodiesel for the operation of coal subsidiary PT Adaro Indonesia. In addition, Pertamina and another Adaro subsidiary PT Indonesia Bulk Terminal (IBT) signed fuel facilities agreement, under which Pertamina will be allowed to use the Oil Fuel Terminal owned by IBT in Mekar Putih, Laut Island, Kota Baru regency, South Kalimantan. The terminal has such facilities as a storage tank with a capacity of 60,000 MT, two jetties with a combined capacity of 1.4 million kl/year.
Editing by Reiner Simanjuntak