Pertamina signs contracts with 11 biodiesel producers

State owned oil and gas firm PT Pertamina (Persero) signed on Friday contracts with 11 producers of Fattcy Acid Methyl Ester (FAME), also known as biodiesel, for the purchasing of a total of 1.84 million kiloliters (kl) of biodiesel over the period of November 2016 through April 2016.

Pertamina?s spokesperson Wianda Pusponegoro said in a statement the purchasing contracts come in line with the existing regulation that raises the mandatory level of biodiesel blended in diesel oil to 20 percent next year from 15 percent this year.

Wianda did unveil the names of the 11 FAME producers. But, According to the directorate general of oil and gas? website, the 11 firms are PT Cemerlang Energi Perkasa, PT Wilma Bioenergi Indonesia, PT Pelita Agung Agriindustri, PT Ciliandra Perkasa, PT Musim Mas, PT Darmex Biofuels, PT Energi Baharu Lestari, PT Anugerahinti Gemanusa, PT Wilmar Nabati Indonesia, PT Bioenergi Pratama Jaya, and PT Primanusa Palma Energi.

Wianda said Pertamina had been supplying diesel oil with 7.5 percent FAME content (B-7.5) since 2009. In 2014, the firm supplied 13.6 million kl of diesel oil mixed with FAME to its customers for which the firm bought 1.5 million kl of FAME. As of Oct. 31, 2015, the firm?s purchasing of FAME reached 300,000 kl and is projected to reach 966,785 kl through the end of this year. Next year, the firm is projected to buy 5.14 million kl of FAME.

The FAME is blended with diesel oil which is sold to subsidized and non-subsidized transportation sectors and power plants.

Editing by Johannes Simbolon