Government plans fuel storage to increase buffer reserves

The government plans to develop petroleum fuel storage with a capacity of 45 million barrels in a bid to increase the country?s buffer reserves to 30-day of supply, from the current average of 21-day.

Kontan quoted Director General of Oil and Gas IGW Wiratmaja Puja as saying on Wednesday that the government is planning to partner with investors from Iran in the project, hoping that construction can start this year. ?We?re currently preparing the regulations,? he said.

Head of the BPH Migas downstream oil and gas authority, Andy Noorsaman Sommeng said that ideally, Indonesia should have buffer reserves of 90-day to ensure energy security in line with the standard of the International Energy Agency. But the government?s plan to build a new storage to increase buffer stock to 30-day is a good start.

In comparison, neighboring Singapore has a buffer reserve of 60-day. (*)