Pertamina leasing and acquiring fuel storages
Wednesday, March 4 2015 - 02:16 AM WIB
State owned oil and gas firm PT Pertamina is leasing and acquiring fuel storage facilities owned by other state owned companies and private companies to accumulate more fuels amid the collapse of oil price.
Pertamina?s Director of Marketing and Commerce Ahmad Bambang told Petromindo.com that the state firm has thus far managed to lease or acquire the fuel storages belonging to among others state owned firms PT Krakatau Steel, PT Perusahaan Listrik Negara (PLN) and PT Semen Indonesia, raising Pertamina?s fuel storage capacity by 650,000 kl.
Furthermore, he said, Pertamina is building a fuel storage facility with a capacity of 500,000 kl.
The action was taken by Pertamina in response to Minister of Energy and Mineral Resources Sudirman Said?s call for the firm to increase its fuel storage capacity to accumulate more fuels, benefiting from the low price of oil at present. The minister expects Pertamina?s fuel storage capacity can be increased to 30 days of the national consumption from around 20 days at present. The National Energy Council (DEN) has also recommended the increase in the fuel storage capacity to strengthen the national oil fuel reserve in anticipation of a possible surge in the oil price in the future.
Achmad said Pertamina is ready to build new refineries or more fuel storages to strengthen the national fuel reserve provided that the government provide reasonable margin and disburse fuel subsidies it has promised to the firm.
?If (the government) wants Pertamina to build refinery and fuel storage by itself, please give us a reasonable margin and pay off its fuel subsidy debt to the firm,? Achmad said.
Editing by Johannes Simbolon