Govt to build oil fuel storage in 14 locations

In order to strengthen energy security, the government plans to build 14 oil fuel storages and four LPG terminals in various parts of the country over the period of 2016-2018.

?The government will build oil fuel and LPG infrastructures. Going forward, all islands will have oil fuel infrastructures. This needs huge investment,? Director General of Oil and Gas IGN Wiratmaja said a lecture called ?Oil and Gas Goes to Campus? at the Mataram University on Lombok Island, West Nusa Tenggara (NTB) province.

Oil fuel storages will be built in among others Bima, Sumba and other areas in eastern Indonesia. The 14 storages will have a total capacity of 69,000 kl, while the LPG terminals will have a total capacity of 6,000 tons.

Aside from building storages, the government will build four refineries, including two in Tuban and Bontang respectively, each with the capacity of 300,000 barrels per day (bpd). The locations for two other refineries have yet to be decided. The refineries will need 10,000 workers during construction and 1,500 workers during operation. ?This will lead to a big economic growth with investment estimated at Rp 100 trillion,? Wiratmaja said.

Furthermore, the government will revitalize the existing refineries in Balikpapan, Balongan, Cilacap and Dumai under the Refinery Development Masterplan Program (RDMP). The revitalization of the Balikpapan refinery has been kicked off and is expected to be completed in 2019.

The Oil and Gas Goes to Campus program aims to garner inputs from academics on oil and gas development. Aside from the Mataram Unversity, similar program has been held at the Udayana University, the Ngurah Rai University and the University of Padjadjaran.

Editing by Johannes Simbolon