Pertamina to process kerosene into jet fuel

State-owned oil and gas company Pertamina may process some of its kerosene output into aviation fuel next year as the country is expected to experience an oversupply of the fuel.

The company's President Director Ari Soemarno said in Jakarta on Thursday the kerosene output of the firm's refineries would exceed the country's demand by at least 500,000 kiloliters next year if the government?s kerosene-to-LPG conversion program progress smoothly.

The surplus would be processed into Avtur, a type of airplane fuel, and then export the fuel to other countries such as Singapore, Ari said.

The government's program to push households to consume liquefied petroleum gas (LPG) rather than the highly subsidized kerosene for cooking is expected to save at least 2 million kiloliters of kerosene next year.

The government has lowered the allocation of subsidized kerosene to 7.8 million kiloliters next year from 9.6 million kiloliters this year.

The head of the company's division for fuel sales, Djaelani Soetomo, said that Pertamina and a Singapore buyer were still negotiating the possibility of exporting Avtur to the neighboring country.

Currently, 230,000 BPD Cilacap refinery has been ready to switch kerosene into avtur. Meanwhile for Balongan, Balikpaan, Dumai and Plaju refineries will follow later, he said.

"The export of Avtur could be begun in the middle of next year. But, before doing that, we have to see the supply condition in the country," he said. (godang)