German?s Oiltanking plans Banten oil storage

German storage firm Oiltanking plans to build oil storage facility in the industrial area of Merak, Banten province with completion seen early 2007, a government official said Tuesday.

Erie Soedarmo, Director of Downstream and Processing at the Ministry of Energy and Mineral Resources told reporters that the company planned initial storage capacity of 40,000 kiloliters, ramping up to 120,000 kiloliters.

He said licensing in currently being processed and construction would commence next year.

He did not reveal the amount of investment planned for the project.

Oiltanking is one of the world?s leading independent storage partners for oils, chemicals and gases. Oiltanking owns and operates 71 terminals with a total storage capacity exceeding 11,1 million cubic meters in 19 countries.

Dutch oil storage specialist Royal Vopak is also seeking to set up a storage facility, which will also cost around $200 million, he said.

While it has surveyed the area around Jakarta's Tanjung Priok port, Vopak is now considering other sites as Tanjung Priok is already "crowded" with oil storage, Erie said.

Vopak is also looking for a local partner for the project, he added. (godang)