Pertamina to build onshore LPG storage tank

State-owned oil and gas company PT Pertamina plans to build on shore LPG storage tanks to help cut down distribution cost as floating storage facility is costly and risky, Kontan.co.id reported Friday.

Pertamina Marketing Director Ahmad Bambang said the company has prepared three programs to realize the plan.

The first is for Pertamina to build an 8,000-ton capacity LPG storage tank in Tanjung Sekong, Merak.

The US$150 million on shore tank will in the future replace the floating storage in Lampung

The second program is to revitalize the Arun storage tank in Aceh and increase the capacity to 8,000 tons with total investment of only $10 million.

The third program is to build another 8,000-ton capacity LPG storage tank in East Java in a partnership with private investor, where Pertamina will have 10-20 percent stake.(*)