Medco plans to build oil storages outside Java

JSX listed energy firm PT Medco Energi International plans to build a number of oil storages in several provinces outside Java such as East Kalimantan, South Sumatra and North Sumatra to meet the demand from industries.

 

"There is a demand out there because there are many industrial areas in such provinces. Even though the margin is relatively small, the storage business will be still important," Rashid I. Mangunkusumo, the director for corporate growth of MedcoEnergi said on Tuesday.

 

At present, Medco is constructing oil storage with a capacity of 6,000 kiloliters in Lamongan, East Java to supply diesel oil to the local industries. The construction of the US$3 million storage is scheduled for completion in six months.

 

He said that the company's new oil storage in Tanjung Priok, with a capacity of 22,000 kiloliters, has begun its commercial operation since May this year. The company had spent up to $12 million to build the storage. (godang/bernard)