September 03, 2024 [Indonesia Business Post]- A subsidiary of State-owned company PT Pertamina International Shipping (PIS), PT Pertamina Energy Terminal, has reported progress in the second phase of constructing its liquified petroleum gas (LPG) refrigerated terminal in Tuban, East Java.
Founded in 1988, the terminal offers a suite of services spanning tank terminal operations, fresh water supply, and waste management.
“The second phase involves building the jetty, obtaining operational permits, and developing onshore operational facilities,” Bayu Prostiyono, President Director of PT Pertamina Energy Terminal, said in a press statement as quoted on Friday, August 30, 2024.
Bayu emphasized that this project is a tangible demonstration of Pertamina’s commitment to maintaining national energy security while ensuring operational efficiency and the safety of LPG distribution in Indonesia.
The project is designed to store LPG and replace the ship-to-ship transfer mechanism, which involves transferring cargo directly from one ship to another. This new mechanism is expected to enhance operational efficiency and reduce operational risks.
During the first phase, Pertamina successfully constructed two refrigerated storage tanks with a capacity of 44,000 metric tons (MT) each, designated for propane and butane.
Additionally, two spherical tanks, each with a capacity of 2,500 MT, were built for mixed LPG storage.
Pertamina highlighted that the LPG Terminal in East Java would play a crucial role in ensuring the availability of energy for the Indonesian people.
Moreover, the construction of this terminal has created employment opportunities for up to 1,142 workers throughout the project and achieved a Domestic Content Level (TKDN) of 33.23 percent.
The establishment of this strategic infrastructure, along with workforce absorption and TKDN optimization, significantly contributes to the national economy.
As part of efforts to enhance operational reliability, the East Java LPG Terminal will bolster the throughput of Pertamina Energy Terminal’s LPG distribution.
The project places a significant emphasis on safety, ensuring that LPG distribution adheres to high security and reliability standards.
Located strategically, the East Java LPG Terminal is set to become a major hub for distributing LPG to eastern Indonesia. The terminal is projected to serve up to 40 percent of the national LPG demand, ensuring energy availability and affordability for the Indonesian public. It will support efficient LPG distribution via land and sea transportation.
Construction plans
In 2023, PT Pertamina Energy Terminal signed a cooperation agreement and held a kickoff meeting for the construction of the East Java Refrigerated LPG Terminal, also known as the Tuban LPG Terminal.
This cooperation, structured as a Joint Operation (KSO), covers the construction of onshore terminal facilities, pipelines, and a jetty.
According to VP of Terminal Operation PET Heri Santika Permana, the Tuban LPG Terminal will allow Pertamina Energy Terminal to manage a larger national energy distribution chain to meet domestic energy needs.
“The Tuban Refrigerated LPG Terminal will eventually become one of the major energy terminals serving and fulfilling 35 percent of the national LPG demand, covering East Java, Bali, Nusa Tenggara, parts of Kalimantan, and Sulawesi,” Heri said in March 2024.
The East Java Refrigerated LPG Terminal is expected to be completed by 2025, with operations anticipated to begin in 2026. Phase II construction follows the completion of Phase I, which concluded in December 2022.
“We hope that the Tuban LPG Terminal project will have a positive impact on the surrounding communities,” Heri added.
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