Pertamina secures 45% of FAME requirement, plans another tender

State-owned oil and gas firm PT Pertamina said that it has secured about 45 percent, or 2.4 million kilo liters of its 5.4 million kilo liters requirement of fatty-acid methyl ester (FAME), or biofuel, for the period of 2014-2015 from recent tenders.

Pertamina Vice President for Corporate Communications Ali Mundakir said in a statement obtained Monday that the company requires the FAME for fuel blending to meet the biofuel mix as stipulated under the Minister of Energy and Mineral Resources Regulation No 25/2013.

He said that Pertamina would hold another tender to be participated by domestic biofuel fuel producers for the supply of FAME in the Sumatra, East Nusa Tenggara, Kalimantan, Sulawesi, and Papua with total requirement of 850,000 kilo liters per year.

He acknowledged that the challenge in supplying FAME to the eastern part of Indonesia regions is the reluctant among producers in making the supply if the price is limited at MOPS.

Editing by Reiner Simanjuntak