Pertamina, Petrogas sign MoU to develop fuel system in E. Java

State oil and gas firm Pertamina and PT Petrogas Wira Jatim have signed a memorandum of understanding (MoU) to jointly develop fuel distribution system in East Java, Detik.com reported.

Under the agreement, both parties are agreed to build two main fuel terminals and one fuel pipeline system.

Pertamina downstream director Hari Purnomo and Petrogas director Abdul Muid signed the MoU in Surabaya Tuesday, the news website said. The East Java provincial administration wholly own Petrogas.

The fuel terminals will be located in Remen and Awar-Awar villages in East Java?s Tuban regency and will have capacity of 450,000 kiloliters and 150,000-200,000 barrels of fuel per day, respectively. Construction of the Remen terminal will last 30 months, and is expected to start operation in 2007. Meanwhile, the Awar-Awar project will be completed in 30 months.

The 134-kilometer fuel pipeline project will link Tuban to Surabaya and was planned for completion by end-2007. (*)