Oiltanking, an independent tank storage provider for petroleum products, chemicals and gases, officially announced the commencement of work on the first independent deep water terminal in Indonesia, located in Cilegon, Banten (Java).
PT Oiltanking Merak believes that the project will provide much needed infrastructure for oil and gas distribution. Through the project, the company will play an important role in Indonesia's recently deregulated oil and gas market by providing a better logistical infrastructure and superior shipping economics. The new terminal will also bring further opportunities in the downstream sector because new players will have access to an independent, world class storage solution.
The terminal is ideally located and offers water draft of up to 18 meters and berths able to accommodate up to 110,000 DWT, and offers a very efficient marine infrastructure, with the Greater Jakarta market easily accessible via the close-by toll road.
The 600,000 cbm terminal will offer premium safety and security management in all aspects of the handling and storage of the full range of petroleum products such as gasoline, diesel, fuel oil as well as jet fuel and liquefied petroleum gas (LPG).
In addition to supplying the Jakarta market, terminal users also have the opportunity to break bulk for Indonesia at large.
The first phase of the terminal will be operational in the second half of 2008 with an initial capacity of 280,000 cbm, part of which has already been reserved by the market.
In the meantime, the construction project will give a significant boost to Banten's economy. PT Oiltanking Merak is confident that the investment will stimulate the local economy in a number of ways, whereas more than 80 percent of materials needed for the site construction will be acquired locally.
Through the establishment of this project and with 35 years of experience in providing exceptional storage services around the world, Oiltanking is delivering its expertise to Indonesia's downstream oil and gas industry.
With the commitment to eliminate accidents and work-related ill health and to protect the environment, Oiltanking will implement its globally recognized health, safety, security and environmental (HSSE) standard for the project.