Pertamina To Supply High Speed Diesel To Freeport

Jakarta, July 1 (Antara) - PT Pertamina would finally supply high speed diesel (HSD), a special diesel used in mining industry, to US-owned mining company PT Freeport after years of negotiations. "This is an achievement and a stepping stone for Pertamina and Freeport," the president director of the state-owned oil and gas company, Karen Agustiawan, said after signing the cooperation agreement for it here on Monday. Pertamina would conduct trial shipments for the next several months while waiting for the expiration of Freeport`s contract with its former supplier. The trial shipment of HSD would be carried out in September while formal shipment would be started early next year. Pertamina plans to supply up to 21,000 kiloliters of HSD to Freeport that has a gold mine in Indonesia`s eastern province of Papua. Pertamina has so far also supplied lubricating oils to shipping company PT Pelayaran Nasional Indonesia (Pelni). Following the signing of a supply agreement Pertamina`s lubricating oils and grease would be used in all PT Pelni`s fleet totaling 36 ships including the new ones. With regard to shipment of oil or oil derivative products needed or produced by PT Pertamina, Pelni would provide a special ship with a minimum measurement of 16,000 MT and specifications according to requirements made by Pertamina. According to Directorate of Marketing and Commerce, Lubricating Oil Unit, Pertamina has so far been the biggest producer of lubricants in Indonesia with a production capacity of around 600,000 KL a year and a domestic market share of around 60 percent. Pertamina recently signed a contract for the supply of lubricants with state-owned electricity company PT PLN`s subsidiaries PT Indonesia Power and PT Pembangkitan Jawa Bali.