Indonesia has recently introduced the supply of B35 biofuel to its fuel terminals, however local bunker suppliers will only be able to deliver the updated spec within March onwards, according to an active marine fuel player in the market.
“Earlier in 2023, Pertamina distributed a circular to Indonesian oil and gas players informing the Ministry of Energy and Mineral Resources has on 28 December 2022 decided to introduce B35 blends into the market as part of a government regulation,” the source told Manifold Times on Wednesday (8 March).
“The Pertamina letter told all agents that Pertamina Patra Niaga (the downstream entity of Pertamina) will be supplying B35 biodiesel at all local fuel terminals from 1 February onwards.”
However, the development has not happened immediately on 1 February 2023 due to operational adjustments needed, clarified the source.
“In reality, not the entire country is supplying B35 biodiesel as a bunker fuel yet as time is needed for logistical and operational adjustments,” he explained.
“Currently many fuel terminals at Indonesia still has stock of B30 biodiesel in its inventory. As such, we will need to wait for current avails of B30 to run out before new B35 cargo gets distributed from these terminals.
“We expect the new B35 blend to be gradually available in the various ports anytime in March and to be available country wide no later than April onwards.”
Referencing the similar circular, the source further informed Pertamina is targeting production and supply of B50 biodiesel from 2025; and the product will likely come with a lower sulphur parameter.
“Sulphur content for the currently introduced B35 product is maximum 0.2%; however, our national energy firm is targeting to supply biodiesel with a max sulphur content of 0.05% by 1 December 2024 with further reduction of max sulphur content to 0.005% by 1 December 2026,” he shared.
In March 2022, Manifold Times reported Pertamina being involved in a study to develop a roadmap for the integration of low carbon fuels into Indonesia’s domestic shipping industry.
Related: Pertamina mulls integration of low carbon bunker fuels into domestic shipping sector
Related: Indonesia looking to expand low sulphur marine fuel bunkering opportunities
Related: PT Pertamina Patra Niaga performs first bunkering of VLSFO in Sunda Strait
Photo credit: Pertamina
Published: 9 March, 2023
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