Indonesia's Pertamina keeps H1 2014 gasoil term imports steady from Q4 2013

Singapore (Platts)--13Jan2014/1251 am EST/551 GMT

Indonesia's Pertamina has finalized the import of 2 million-3 million barrels/month of 0.35% sulfur gasoil for delivery over January-June 2014, keeping volumes steady from the last quarter of 2013, market sources said Monday. Pertamina's term gasoil imports have fallen slightly from January-June 2013, when they averaged 3 million barrels/month. The dip in gasoil demand likely came on the back of Indonesia's new mandate to blend 10% biodiesel into gasoil, from the previous 2.5%. Pertamina occasionally buys additional barrels to supplement its term imports. It renewed term 0.35% sulfur gasoil cargoes for H1 2014 at premiums of $1.25-1.90/barrel to the Mean of Platts Singapore 0.25% sulfur gasoil assessment, CFR basis. The company could not be reached for confirmation on the term volumes or premiums. Under the contract, 600,000-barrel cargoes of 0.35% sulfur gasoil were done at a premium of $1.25/b over MOPS 0.25% sulfur gasoil assessment, CFR basis, for delivery to Balongan, while cargoes of the same volume for delivery to Tuban were fixed at a $1.30/b premium to the pricing formula, market sources said. Premiums are up 15-20 cents/b from the fourth quarter for deliveries to Tuban and Balongan. Cargoes of 200,000 barrels for delivery to Kotabaru were done at $1.90/b premium to MOPS 0.25% sulfur gasoil assessment, CFR basis, steady from Q4, 2013. Cargoes of the same volume for delivery to Bau Bau was done at a $1.30/b premium to the same pricing formula. This is the first time Pertamina has bought gasoil for delivery to Bau Bau port.--Wendy Cheong, wendy.cheong@platts.com --Edited by Wendy Wells, wendy.wells@platts.com