Indonesia's state-owned oil and gas company Pertamina plans to build a fuel storage facility with a capacity of 300,000 kiloliters on Sambu island in Sumatra's Riau province, the company's vice president for communication, Mochamad Harun said Tuesday.
The project will require an investment of $50 million, he said, adding that it was expected to be completed by 2013.
Pertamina will store fuel oil and gasoline at the facility, which will be initially used by Pertamina Energy Services. An agreement to this effect was signed on December 22.
Pertamina Energy Services is wholly owned by Petral, the trading arm of oil and gas company Pertamina.
Pertamina also plans to build infrastructure related to the oil products storage on Sambu island, including three jetties that can accommodate 100,000 dwt ships, Harun said.
"Besides building up the country's stockpiles, the project is also expected to optimize Sambu island as region's fuel business center. It will also help Pertamina Energy Services grow as a fuel trading company in Southeast Asia," Harun said.
