Pertamina to build two new fuel depots

Pertamina to build two new fuel depots

The Jakarta Post, Jakarta

The state-owned oil and gas company Pertamina plans to develop
major fuel depots and pipelines worth US$145 million this year to
maintain the security of fuel supplies in Java, according to
company president Baihaki Hakim.

Baihaki said the company planned to build a new $60 million
fuel depot in Cikampek, West Java, and a pipeline to connect the
Cikampek depot with the Balongan depot in Indramayu, West Java.

He added that Pertamina would also develop another fuel depot
in Gresik, East Java, worth $60 million and a pipeline from
Rehulu in Yogyakarta, to Banyumas in Central Java worth $25
million.

"We have prepared a masterplan. We really want to secure fuel
distribution in Java," he told reporters on the sidelines of a
ceremony Thursday.

He said that Pertamina would hold open tenders for all of the
projects.

Baihaki said he expected the Cikampek project to be completed
within the next two or three years as part of a bid to help
secure fuel supplies for Jakarta.

"When it (the Cikampek depot) is completed, we're sure that we
will always be able to ensure fuel supplies to Jakarta, even when
there's floods," he said.

The recent flood disaster has sparked worries over the
security of fuel supplies in Jakarta as the city mainly relies on
fuel from the Plumpang depot in Jakarta and the Balongan depot.

According to Pertamina data, the Cikampek depot will consist
of nine tank with a total fuel storage capacity of 26,000
kiloliters.

Pertamina has said it would invest billions of dollars in the
upstream and downstream oil industries over the next five years
as part of its effort to become a world class company amid
ongoing liberalization of the country's oil sector.