Pertamina, Accelon to build $6b plant<\/p>\n
Grace Nirang, Bloomberg\/Jakarta<\/p>\n
State oil and gas firm PT Pertamina and Canada's Accelon Energy
\nSystems Inc. agreed to build a US$6 billion plant that would turn
\ncoal into diesel.<\/p>\n
The companies signed an initial agreement on Nov. 23,
\nPertamina President Director Widya Purnama told reporters here on
\nFriday. Accelon will finance the project and Pertamina will buy
\nthe fuel produced at the plant to be built in Kalimantan, he
\nsaid.<\/p>\n
Indonesia, the second-smallest producer in the Organization of
\nPetroleum Exporting Countries, is seeking to reduce fuel imports
\nto cut costs and narrow its budget deficit. The country buys
\nabout one-third of its fuel requirements from overseas.<\/p>\n
\"We will sign a final agreement four months from now,\" Widya
\nsaid. The plant will convert 10 million metric tons of coal into
\n28 million barrels of diesel a year, he said.<\/p>\n
The plant's output will cover a third of Indonesia's diesel
\nimports, he said. Pertamina will buy the diesel from Accelon for
\n15 years. It may take three years to build the plant, which has
\nMerrill Lynch & Co. as its financial adviser.<\/p>\n
Indonesia imports about 11 million barrels of crude oil a
\nmonth, at a cost of as much as $1.6 billion.<\/p>\n
Pertamina is planning to buy more oil pumped within
\nIndonesia's borders to supply domestic refineries and reduce the
\ncountry's oil-import bill.<\/p>\n
On Thursday, Pertamina said it agreed to buy 250,000 barrels
\nof crude oil from BP Plc every three months starting in December.
\nPertamina will buy Arjuna crude oil, which is pumped in West
\nJava, Nina Sulistyowati, Pertamina's assistant manager for oil
\nprocurement said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-accelon-to-build-6b-plant-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}