Pertamina launches 7 infrastructure projects

State oil and gas company PT Pertamina (Persero) launched on Wednesday seven infrastructure projects as part of its bid to fulfill its Asian Energy Champion 2025 vision and to boost its performance on par with world-class companies.

President director Karen Agustiawan officially launched the projects, which are worth a total of US$340 million.

Pertamina?s marketing manager Hanung Budya said the projects were of a strategic interest as they would determine Pertamina?s and Indonesia?s success.

She said to achieve the Asian Energy Champion 2025 vision, Pertamina has prepared several strategies promulgated in the corporate long-term planning aimed at enhancing the company?s performance that could rival world-class oil companies. One of the company?s focuses is to empower its downstream portfolio through supply and distribution infrastructure development.

?Today, Pertamina launched projects that are expected to support attainment of Pertamina?s performance and duties as Indonesia?s National Energy Backbone which is responsible for supply of domestic energy and to strengthen the company?s standing in oil and gas business in the national, regional and international levels,? she said.

The first project is expansion of oil fuel storage terminal on Sambu Island to 300,000 kiloliters along with a pier with a capacity of 100,000 DWT. The project costs $94.8 million.

The second is the development of Tanjung Uban oil fuel terminal which is valued at $62.36 million. It will increase the tank?s capacity to 200,000 kl along with an automation system terminal, a new pier with a capacity of LR 100,000 DWT, and a blending facility which can advance flexibility of imports of premium or HOMC 92 and naphta. The two projects will be completed at the end of 2016.

The third is the construction of Panjang LPG terminal in Lampung with a capacity of 5,000 metric tons to supply consumers in Lampung and neighboring areas and serve as a buffer stock for South Sumatra and Bengkulu.

The fourth is the construction of Very Large Gas Carrier (VLGC) with a capacity of 84,000 cubic metric (equivalent 50,000 tons of LPG). With a length of 225.8 meters the vessel will be the largest in the world. Pertamina procures LPG carriers to improve distribution and promote efficiency.

Pertamina will also build an aircraft refueling depot each in Kualanamu Airport in Medan, Hassanuddin Airport in Makassar and Lombok Airport in Mataram. The three projects are expected to improve service of aircraft fuel sales.

"The projects will support acceleration and expansion of national economic growth and provide a momentum of economic transformation, especially in the region, and enhance efficiency and inter-regional, interisland and international logistical system,? Pertamina?s marketing director Hanung Budya said.

Editing by Johannes Simbolon