Pertamina seeks prompt gasoline following Cilacap fire

Indonesia's state-controlled refiner and Asia-Pacific's largest gasoline buyer Pertamina has issued a spot tender to buy a gasoline cargo for delivery next week, after a fire broke out at its storage tank on 13 November.

The situation has been brought under control and the refinery is now running, but the refiner could have issued a spot tender as a precaution, and there is a chance they might cancel it if everything returns to normal, said a trader.

Pertamina is seeking 200,000 bl of 90R gasoline cargo for 21-25 November delivery to Cilacap. The pricing basis will be either on the Argus or Platts 92R gasoline spot assessments, whichever is lower. The tender closes tomorrow.

A fire broke out at a storage tank at Pertamina's 348,000 b/d Cilacap plant in central Java on 13 November but left no lasting impact on operations, the company said yesterday after the fire was extinguished.

Stocks across Indonesia are well maintained and secured, according to the chief executive of Pertamina's commercial and trading arm Alfian Nasution.

The Asian gasoline margin, or the Argus 92R Singapore price against Ice Brent crude, has recently come off significantly after hitting a six-year high on 26 October, but with supplies from China still capped, any increase in spot demand could reverse the trend. Margins hit a high of $17.50/bl on 26 October but was last assessed at $11.03/bl on 12 November.

By Aldric Chew