Indonesian Pertamina to Import up to 9.8 Mil Barrels Gasoline in August

Indonesian state-owned Pertamina plans to import up to 9.8 million barrels of gasoline in August, up 13% from the 8.7 million barrels estimated as July imports, according to market sources.

August imports were expected to comprise of 4.5 million-6.2 million barrels of 88 RON gasoline and around 3.0 million-3.6 million barrels of finished 92 RON gasoline, according to the sources.

Sources said while there would be demand for 95 RON gasoline, they were unable to provide a possible quantity.

In comparison, the estimate for July imports comprised of up to 800,000 barrels of high octane mogas component 92 RON gasoline, around 3.9 million barrels of finished 92 RON gasoline and 3.8 million-4.0 million barrels of 88 RON gasoline, according to trade sources.

Pertamina was said to have awarded its H2 2017 88 RON gasoline and 92 RON gasoline tenders, each for 15-25 parcels per month on an FOB basis, loading from Malaysia Singapore.

A cargo is 100,000-250,000 barrels at the buyer’s option. In addition, each tender also sought 1-3 parcels per month of 200,000-500,000 barrels at the buyer’s option on a CFR basis, for delivery to Jakarta, Terak, Tuban, Balongan, or Tanjung Uban, plus Merak for 92 RON gasoline.

The 88 RON gasoline tender was awarded to more than one company at a discount of $2.30-$2.50/b to the Mean of Platts Singapore 92 RON gasoline assessments. The tender for 92 RON gasoline was awarded to more than one company at premiums in the range of 50-80 cents/b to MOPS 92 RON gasoline assessments, according to market sources.

Pertamina’s Balongan refinery in West Java has become its first to produce Euro 4 compliant gasoline, ahead of an October 2018 deadline by which the country expects to move to Euro 4 gasoline specifications from Euro 2.

The 125,000 b/d refinery has the capacity to produce 2.06 million barrels/month of gasoline, split into 1.3 million barrels of 88 RON gasoline, 700,000 barrels of 92 RON and 60,000 barrels of 98 RON, Pertamina said.

The government has said state-owned Pertamina should not to delay its refinery projects, as the country aims to reduce its dependency on imported oil products.

“We will seek a solution to start up the projects as scheduled…the sooner the better, as we import a lot of fuel,” oil and gas director general Gusti Wiratmaja Puja has said.

Previously, Pertamina had said that the Cilacap refinery, Pertamina’s joint project with Saudi Aramco, would be delayed to 2023, and the Tuban refinery, a joint project with Russia’s Rosneft, by two years until 2023-2024.