Pertamina to import LPG from Singapore and Japan
Friday, February 9 2001 - 04:30 AM WIB
State oil and gas company Pertamina is ready to import at least 15,000 tons of liquefied petroleum gas (LPG) from Singapore and Japan to meet domestic demands following the stoppage of LPG production by its Balongan refinery plant in West Java due to maintenance.
A source at Pertamina said the importation of 15,000 tons of liquefied petroleum gas was to meet demands in Jakarta and West Java for February only. The purchase would be conducted through negotiations with trading companies in the spot markets, both in Singapore and Japan.
"The import of LPG from the spot market in Singapore is pursued in line with the turn-around (maintenance) of the Balongan refinery, that requires the plant to be closed for 60 days between February and March," the source was quoted by Platt's Commodity News as saying.
The source said that currently, Pertamina had signed at least six to eight contracts, each with contract volume of between 1,800 tons and 2,500 tons of LPG. The imported LPG would then be stored in Pertamina's Plumpang fuel storage facilities in North Jakarta.
"We are still looking for more LPG in the spot markets in Singapore and Japan to fill our storage in Greater Jakarta for March," the source said.
No officials at Pertamina were available for comment on this importation of LPG.
According to Pertamina, this state oil and gas company supplies around 1,100 tons to 1,500 tons of LPG to customers in Jakarta and West Java. To ensure constant supply, Pertamina needs to keep at least 8,000 tons of LPG in its storage for Jakarta and West Java.
Meanwhile, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that he had instructed Pertamina to keep its fuel storage at the save level following the shut-down of Balongan refinery for maintenance.
"I have (instructed Pertamina) to prepare this matter well and supply more fuels to Jakarta," he said, adding that additional fuel supplies to Jakarta could be conducted from Cilacap refinery in Central Java or from Pertamina's storage in Ujung Berung, Bandung.
He noted that Pertamina should also maintain its national fuel stocks enough for at least 28 days of consumption. "It doesn't matter, if it is met by imports or from our own refineries." (*)