Pertamina’s Pulau Sambu Fuel Terminal is preparing to receive its first international low sulphur fuel oil (LSFO) cargo from Freepoint Commodities this month, as it seeks to establish a trading hub in Indonesia.

Last year, a Heads of Agreement for the Cooperation and Utilisation of Pertamina’s Pulau Sambu Fuel Terminal was signed between the two companies in Jakarta.

Pertamina says its 320,000 kilolitre-capacity Pulau Sambu Fuel Terminal is strategically located in the Malacca Strait which facilitates participation in “one of the busiest trading and shipping economies in the world”.

Freepoint, which began supplying LSFO in Malaysia from floating storage in October 2019, has been supporting Pertamina’s efforts in upgrading and refurbishing Pulau Sambu’s fuel oil tanks since late last year to ensure international standards are met.

The facility 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 IMO 2020-compliant, 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 fulfil 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.

Upgrading of the tanks will continue through early 2021 as the terminal prepares for full integration into the international trading network.

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15th December 2020