Oiltanking Karimun (PTOTK) has formed a partnership with Matrix Global Holdings, a developer of oil futures and bilateral contracts, to develop a digital auction platform for refined product storage at its facility on Karimun Island in Indonesia.
The Karimun facility has a storage capacity of 730,000 m3. PTOTK, a joint venture between Oiltanking and Gunvor, and Matrix plan to run the first auction using Matrix’s proprietary auction platform for fuel oil by the end of 2021. Following a final decision to proceed, the two companies will announce the date, auction capacity, terms and process.
It is not the first time Oiltanking has teamed up with Matrix. In December 2020, Oiltanking Copenhagen held its first online electronic auction for storage capacity using Matrix Global’s new auction platform, for jet fuel and ultra low sulphur diesel (ULSD).
‘By developing a digital auction platform for PTOTK and partnering with Matrix, Oiltanking has achieved another important milestone in its digitalisation and innovation roadmap, thereby supporting Oiltanking’s vision of being the preferred partner in energy logistics. We will continue to develop innovative ways, together with partners, that will allow us to even better serve our valued customers around the world,’ says Andy Loh, head of commercial, Oiltanking Asia Pacific.
Richard Redoglia, CEO of Matrix Global adds: ‘We believe that our model of offering storage in a transparent, standardised manner will bring value to the facility by reducing credit exposure, enabling access to more participants and realizing the optionality embedded in the forward value of storage. We are continuing to expand our innovative model both domestically and internationally.’