Go Global, Pertamina Maximizes LSFO Service Potential for Ocean Going Ships in The Sunda Strait
Jakarta, August 27, 2021 – PT Pertamina Patra Niaga, as PT Pertamina (Persero) Sub Holding Commercial & Trading (SH C&T), actualized the commitment of bunkering services for vessels crossing the Sunda Strait by the prime distribution of Low Sulphur Fuel Oil (LSFO) for Ocean Going Ships at Cigading Port, Banten.
Marketing Development Director of PT Pertamina Patra Niaga SH C&T, Hasto Wibowo, explained that this was a concrete step for Pertamina in carrying out the agreement with PT Krakatau Bandar Samudera (KBS). It was carried out at the Office of the Coordinating Ministry for Maritime Affairs and Investment on Wednesday (4/8/2021), witnessed by the Deputy Minister for Coordination of Maritime Sovereignty and Energy, Basilio Dias Araujo, and President Commissioner of PT Pertamina Patra Niaga SH C&T, S. Milton Pakpahan.
“Previously, Ocean Going ships always did the bunkering or refueling in the Singapore area, even though it is estimated that 53,000 ships pass along the Sunda Strait or around 100-130 ships pass per day, and it was worth 54 million USD/year. Pertamina wants to take this opportunity, and with the LSFO product, I believe Pertamina can compete and maximize the potential of this market,” said Hasto.
This first distribution was made to the Cyprus-flagged vessel MV Elona, which was sailing from Brazil. Pertamina will supply MV Elona with an LSFO of 160 Metric Tons (MT) or the equivalent of 175,000 Liters.
“This premier distribution is a good start, showing Pertamina’s readiness and capability in serving the needs of Ocean Going Ships, which so far have not been maximized. At the same time, it will strengthen Indonesia’s energy, especially the provision of LSFO ship fuel,” said Hasto.
Apart from readiness, Hasto also explained that Pertamina’s LSFO is following international standards and IMO (International Maritime Organization) regulations which require the use of LSFO as of January 1, 2020. The LSFO is ship fuel with a maximum sulfur content of 0.5%, and LSFO that Pertamina distributes has met these requirements.
“LSFO 0.5% Sulfur has become the standard that Pertamina has applied since the IMO regulation was enacted. Besides, it is better for ship engines; LSFO 0.5% Sulfur has a more significant impact on health and environmental sustainability, especially in the area and for residents around ports and coastal areas, so we can say that LSFO is Go Green,” he continued.
Hasto gave extraordinary appreciation to PT KBS for managing the Krakatau International Port (KIP) Cigading for the synergy and swift action of implementing the bunkering business in the waters of the Sunda Strait. In the future, Pertamina will also continue to seek and develop potential in other strategic water areas, one of which is bunkering in the Malacca Strait.
“Synergy with KBS is a strategic step to strengthen Indonesia as a maritime axis, especially in our strategic waters. With Pertamina’s services at this strategic point, it is hoped that it can support the country’s economic growth and, most importantly, provide the best service in our strategic water areas. In the future, Pertamina’s target is to be able to compete with other neighboring countries in LSFO bunkering services,” concluded Hasto.
At the same time, the CEO of PT KBS, Akbar Djohan, said that the inaugural maritime business of Marine Fuel Oil (MFO) proved KBS’s grand strategy. The strategy is building an oil and gas bunkering ecosystem as an expansion strategy in the maritime business along the Sunda Strait. Moreover, KBS’s commitment to making the Sunda Strait a strategic port that can serve all the shipping needs with international standard services that continue to be improved and maintained.
“This is the synergy and mutualism to support the government’s program in encouraging Pertamina’s LSFO products and strengthen energy supply chains in the Krakatau Integrated Port Area. Furthermore, this first bunkering proofs that KBS or KIP continues to develop a full range of services to meet the shipping needs and maritime businesses in Indonesia. Especially in the Sunda Strait, vessels sailing through and stopping in the Sunda Strait will be easy to refuel and get other logistics services,” explained Akbar Djohan.
Meanwhile, Deputy Minister for Coordination of Maritime Sovereignty and Energy at the Coordinating Ministry for Maritime Affairs and Investment, Basilio Dias Araujo, marked a step forward in proving that Pertamina and KBS can provide services in Indonesia’s strategic maritime lanes.
“The Sunda Strait is one of Indonesia’s strategic maritime routes. There are still the Malacca Strait and the Lombok Strait, for example. We are talking about the potential for 200 thousand Ocean Going Ships to pass through strategic straits in Indonesia. This is a big opportunity. We need to prepare facilities and services like today in other strategic locations,” explained Basilio.
Basilio Dias Araujo also expressed his appreciation to Pertamina and KBS for the swift action. It only took 10 days since the cooperation agreement signing.
“It means the market response is very positive. Once again, congratulations to Pertamina for having LSFO capabilities to supply market needs and, of course, KBS for having the capacity to provide bunkering activities. Nevertheless, today is proof of utilizing the country’s foreign exchange opportunities that have not been optimal. Hopefully, we can immediately take the opportunity of other strategic routes,” concluded Basilio.
For further information regarding Pertamina’s retail and industrial-scale products and services, please contact Pertamina Call Center (PCC) 135.