Pertamina plans tender to buy 850,00 kl of biodiesel

Wednesday, March 12 2014 - 01:29 PM WIB

By Godang Sitompul & Febry Silaban

State owned oil and gas firm PT Pertamina will hold the Phase III Tender to procure 850,000 kl per year of biodiesel or fatty acid methyl ester (FAME) from March to April this year to meet its growing needs for biodiesel.

Ali Mundakir, VP Corporate Communication of Pertamina, said in a seminar that of the 850,000 kl/year biodiesel, 115,000 kl/year will be allocated for Sumatra, 28,000 kl/year for Nusa Tenggara, 335,000 kl/year for some areas of Kalimantan and Sulawesi and 372,000 kl/year for some areas of Kalimantan, Sulawesi and Papua.

The tender is to follow up the previously-held tenders to procure a total of 2.5 kl of FAME in two phases. The firm needs 5.4 million kl of FAME in two years.

In line with the government?s instruction, Pertamina has stipulated that the price for the fuel should not higher than MOPS (Mean of Platts Singapore) for diesel, free on board (fob). Different from the previous tenders, to solve the cost problems faced by FAME suppliers to ship their products to the marginal areas of eastern Indonesia, where demand is low, Pertamina has stipulated the transportation cost should not be higher than Pertamina?s diesel transportation cost.

Editing by Johannes Simbolon

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