AKR to build fuel facilities outside Java

Publicly listed chemical distributor PT Aneka Kimia Raya (AKR) Corporindo said it planned to build fuel tanks and distribution facilities outside Java as part of its US$ 30 million expansion plan this year to develop its downstream oil and gas business, Kompas reported Tuesday.

AKR Corporindo's head of investor relations V. Suresh said in Jakarta on Monday that the company would also build more fuel facilities in Sumatra, Kalimantan and Bali.

"As an initial step, we will build such facilities in Medan and Lampung, several of which will be new ones and several others are the existing ones that we have but will be modified, such as tanks used to store chemical materials will be converted into oil tanks," he said, adding that it would take some 18 months to build additional oil tanks.

According to Suresh, AKR also plans to distribute premium gasoline for industry. Currently, the company owns three oil tankers in Surabaya, Semarang and Ciwadan, with accumulated total capacity of 80,000 kiloliters (kl).

Earlier, AKR was eyeing to enter aviation fuel distribution business in Indonesia following its success to enter industrial fuel distribution.

Suresh said in Oct 2006, that thus far, AKR is till trying to find strategic partner to run the business. He said one of the potential partners AKR is considering is Anglo-American energy giant BP. ?AKR has been in business with BP Singapore refinery since 2005. (*)