State-owned oil company PT Pertamina is planning to build a $450 million (€340 million) centralised crude oil terminal in the Indonesian territory of Lawe-Lawe, Kalimantan.
The terminal will consist of 25 storage tanks and be able to store 25 million barrels of oil when building work has been completed – scheduled for 2014. EPC companies will be called to submit their bids for the terminal later this year.
In addition to storage tanks, the terminal will also feature a crude blending facility. Pertamina will have the option to purchase a number of crude oil varieties at competitive costs because the blending facility will be able to handle highly contaminated domestic crude oil.
The new terminal is also expected to become one of Southeast Asia’s key trading hubs for crude oil.
To date the environmental impact assessment has been carried out. Pertamina claims the regional administration is in support of the project and as a result has sped up permit-approval process.