Pertamina to operate new distribution terminal in Balongan

State oil and gas company Pertamina will officially begin the operation of a new fuel distribution terminal in the company's refinery complex in Balongan, Indramayu, West Java later next month, Bisnis Indonesia reported on Friday.

Pertamina's deputy director for marketing and trading Hanung Budya said in Bali on Thursday that the opening of the new distribution terminal which has a storage capacity of about 300,000 kiloliters per day was expected to increase the company's fuel stocks for Java and Sumatra distribution networks.

For the same purpose, the company would also operate a new distribution terminal in Tuban, East Java in 2009, with a storage capacity of about 200,000 kiloliters per day, Hanung said.

"With the opening of the two fuel terminals, Pertamina will be able to increase its fuel reserve capacity of about 500,000 kiloliters per day," he said.

He added that with the operation of the two terminals, Pertamina would be able to stop the operation of high-cost floating storages in Teluk Semangka, Lampung and in Madura Strait which have storage capacity of about 3.6 million barrels and 2.2 million barrels, respectively.

"With the operation of two distribution terminals, the two floating storages are no longer needed," he said. (*)