Indonesian state-owned oil company PT Pertamina on Sunday (13 December) said its Pulau Sambu Fuel Terminal, located on an island between Batam and Singapore, is preparing to receive its first international Low Sulphur Fuel Oil (LSFO) cargo from Freepoint Commodities (Freepoint) in December.
The Agreement for the Cooperation and Utilization of Pertamina’s Pulau Sambu Fuel Terminal was signed between the two companies in Jakarta last year.
Pertamina said this first international LSFO cargo into Sambu marks its efforts to optimise company assets and establish a trading Hub in Indonesia.
The company noted its Pulau Sambu Fuel Terminal has 320,000 KL of storage capacity and is strategically located in the Malacca Straits to participate synergistically in one of the busiest trading and shipping economies in the world.
Freepoint has been supporting Pertamina’s efforts in upgrading and refurbishing Pulau Sambu’s fuel oil tanks to ensure international standards are met in all aspects since late last year.
Pertamina said the on-track handover of the first batch of tanks for operational use before the year-end is a testament of a successful collaboration between the two companies.
Pulau Sambu Fuel Terminal is expected to ramp-up to optimal LSFO utilisation in 2021, with trading operations supported by Freepoint and by Pertamina’s International Marketing & Distribution (PIMD) to provide environmentally friendly, low emission fuel supply to the international and regional shipping industries.
“The utilisation of Pertamina’s Fuel Terminal in Pulau Sambu with Freepoint is pivotal to ensure our Fuel Terminals fulfill all international standards and reinforce Pertamina’s ambition to further expand its footprint in the global energy market,” said Mulyono, Pertamina’s Logistics & Infrastructure Director.
“We are only at the beginning stages on what is strategically possible as we work together with Pertamina to support their expansion into the international LSFO markets,” added Ouyang Xiuzhang, Freepoint’s CEO of Asia.
Upgrading of the tanks continues through early 2021 as the terminal prepares for full integration into the international trading network by being a reliable LSFO supply point for the Singapore Straits shipping market.
Related: Freepoint Commodities to start Singapore VLSFO bunker business in Q4
Related: Indonesia: Freepoint Commodities expands regional bunker business
Photo credit: Pertamina
Published: 15 December, 2020
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