Pertamina, Indonesias national oil company, has appointed Tengyu Trading (Shanghai) Co. Ltd. to distribute its motor oils to 26 provinces in China.
The market size in China is 10 times bigger than Indonesias, Pertamina President Director Karen Agustiawan said in a statement last month. As one of the biggest automotive markets in the world, Chinas fast growing economy opens up a good opportunity for Pertamina to reach its sales target of 1 million liters in the first year [in China]. With the growth prediction of 6 to 7 percent annually, it is hoped that in 2015, Pertaminas lube business will reach 5 million liters per year.
Pertamina is marketing its Fastron motor oil products in China in several grades, including 5W-30, 15W-50 and 10W-40 for petrol-fueled vehicles, and 15W-40 for diesel-fueled vehicles. Fastron lubricants are made from API Group III base oil. The SK-Pertamina joint venture base oil plant in Dumai, Indonesia, has 7,000 b/d Group III capacity.
With the addition of China, Pertamina exports its lubricants to 19 countries, including Australia, Belgium, Pakistan, the United Arab Emirates, Bangladesh, Myanmar, Singapore, Taiwan and Japan.
Through November 2011, Pertamina said its total sales of export lubricants reached 193,000 kiloliters, or 23 percent above the companys set target of 156,000 kiloliters. The company expected its annual total lubricants sales to reach 565,430 kiloliters for 2011, up 13 percent from its 2010 total. For 2012, the company anticipates sales will reach 596,000 kiloliters.