Indonesias state-owned Pertamina Lubricants announced last week it set up a base oil export hub for Asia in Port Kabil, Batam Island.
The company said it will transport base oils to Batam from its refinery at Cilacap, on the island of Java. At Port Kabil, sister company PT Pertamina Patra Niaga will handle logistics and administration, using a tank farm and port infrastructure owned by the local government.
Batam is an industrial island and free trade zone located east of Sumatra and 20 kilometers from Singapore.
Last week, Pertamina exported about 6,000 metric tons of API Group I base oil – a bright stock – to PetroChina International (HK) Co. Ltd. and bound for Taichan Port, China.
This inaugural export marks our commitment to lube base oil processing to the international market with greater scale and volume and longer distances but at a more cost efficient cost so that it can be more competitive in the export market. Batam geographically brings us closer to export-oriented countries, such as in Southeast Asia, China, the Middle East, Europe and Australia, Afandi, president director of PT Pertamina Lubricants, said in the press release.
According to the press release, Pertamina previously exported bright stock from Cilacap, where its refinery has a base oil plant with capacity to make 449,000 tons per year of API Group I. The company decided to switch to Port Kabil because it has more storage capacity, a customer-friendly port and the ability to accommodate larger vessels such as ocean-going and mother vessels.
Going forward, Pertamina Lubricants will continue to maximize sales and exports, including sales through flexi-bag, retail and intermediate bulk container blending and trading results, the company said in the press release. According to local media reports, the company will construct a skid tank and flexi-bag facility in Batam.
Pertamina Patra Niaga trades and distributes non-fuel products such as rubber processing oils and paraffinic products, solvents, slack wax and others in Batam. It also distributes Pertamina Lubricants motor vehicle oils and lubricants for heavy equipment and ship engines.