Adaro, Shell sign IBT fuel supply deal

IDX-listed coal mining firm PT Adaro Energy Tbk announced on Thursday that its subsidiary PT Indonesia Bulk Terminal (IBT) has signed a fuel facilities agreement with PT Shell Indonesia, a unit of Royal Dutch/Shell to support traffic growth at IBT?s port and increase the income stream coming from liquid bulk jetty operations.

IBT is 100% owned by Adaro Energy and is the operator of the common user Pulau Laut Coal Terminal on the southern tip of the island of Pulau Laut. IBT?s port has a rated throughput of 12 million tonnes per annum and is able to load vessels of up to 80,000 DWT.

As Adaro Energy transfers more of its ship loading activities to the Taboneo open anchorage at the mouth of the Barito River, IBT is implementing marketing and business development strategies to sustain and grow profits. The liquid bulk business has always ben a part of the IBT development plans, the company said

Shell will build a fuel storage terminal with a minimum capacity of 60,000 tonnes within the terminal facilities of over the land owned by IBT in Pulau Laut, South Kalimantan.

IBT will construct other shared facilities within IBT?s Terminal, which will be used by

Shell and are required for the loading and unloading of oil product from Fuel Storage acility to the vessel or barges.

Shell is to own, maintain, and operate the Fuel Storage Facility which will be transferred o IBT in 2022, or earlier if agreed to by both parties. After the transfer Shell shall still be ble to use the facility for the storage and handling of fuel.

Shell shall finance, design, construct, own, operate and maintain the Fuel Storage acility, while IBT will do the same for the shared facilities. The total cost of the project is estimated at around $40 million.(alex)