Pertamina plans to build crude storage in East Kalimantan

State owned oil and gas firm PT Pertamina (Persero) plans to build a crude storage on 1,300 ha of lands owned by the firm Lawe-Lawe, East Kalimantan province.

Pertamina?s Processing Director Rachmad Hardadi was quoted by Detik as saying the existence of such Strategic Petroleum Reserve (SPR) is important to ensure security of supply for the nearby Balikpapan refinery. It will also ensure supply for the refinery that Pertamina plans to build in Bontang, also in East Kalimantan. The Bantang refinery is targeted to be completed in 2023.

Rachmad said Pertamina will cooperate with a partner in the project and the firm will hold a selection to choose partner ?after the Idul Fitri Islamic holiday?. The partner is expected to provide crude for the strategic reserve and Pertamina will pay the partner anytime it takes crude from the strategic reserve.

The project is expected to take 1.5-2 years to develop, Rachmad said, but he refused to unveil the investment allocated for the project, saying it is still be being calculated.

He said the project is part of Pertamina?s plan to raise the country?s crude stockpile from the current level of equal to 20 days of consumption to the level of 30 days of consumption. (*)