Pertamina to complete two fuel terminals next year

State-owned oil and gas firm PT Pertamina said that its fuel terminals currently being developed on Sambu and Tanjung Uban Islands, in Riau Islands Province, with combined capacity of 500,000 kilo liters are expected to be completed in the first half of 2016.

Pertamina said in a statement Sunday that the Sambu fuel terminal, with a capacity of 300,000 KL and investment requirement of US$94 million, is targeted to be completed in March of 2016. The terminal will have a blending facility for MFO and HSD fuel products, and equipped with a 100,000 DWT dock facility.

The Tanjung Uban terminal, with a capacity of 200,000 KL and investment of $62 million, is expected to be completed in June of next year. It will also be equipped with 100,000 DWT dock facility. It will also be equipped with blending facility for motor gasoline (mogas) that would allow increase in flexibility in the import of premium gasoline or HOMC 92 and naphtha.

?Construction of the projects is currently still on track. We hope WIKA as the EPC contractor could complete the project on time as scheduled or if possible sooner,? said Pertamina President Director Dwi Soetjipto, referring to state-controlled engineering and construction firm PT Wijaya Karya Tbk.

He added that once the terminals are completed, it would provide a new era for Pertamina which will also act as storage and blending facility provider. In addition to support energy security for the country, the facilities will also support oil trading business in the Southeast Asia region particularly for international-standard HSD and MFO fuel products.

With the operation of the Sambu terminal, whose capacity is projected to increase to 800,000 KL in the future, Pertamina is expected to have a market share of 5-10 percent compared to the current share of less than 1 percent. The total market share of MFO and HSD in the Malacca Straits is about 45 million KL per year.

Editing by Reiner Simanjuntak