Indonesia's refined products stockpiles fall below 20-day target
Jakarta (Platts)--13May2005
Indonesia's fuel stockpiles had fallen to 19 days as of May 11, below the 20 days minimum floor targeted by the government, according to documents obtained by Platts Friday. Stocks had fallen as suppliers have held up deliveries while the state company has struggled to pay banks to provide necessary letters of credit. A vessel carrying 600,000 bbl of gasoil was demurred in each of Teluk Semangka and Kalbut, both in Sumatra. Another unidentified vessel carrying 200,000 bbl of gasoline was demurred in Singapore due to problems Pertamina is having making payments. The May 11 stockpiles included gasoline stockpiles of 15.6 days, kerosene 24.8 days, gasoil 15.2 days, diesel fuel 36 days, and fuel oil 27.4 days. Previously, Indonesia's minister for energy and mines, Purnomo Yusgiantoro had said it was dangerous for the stockpiles to fall below 20 days "because it can be [depleted] quickly and cause a rush [of demand]." The document further suggested that if Pertamina should resolve issues with letters of credit, fuel stockpiles could return to 20.9 days by end-May. Meanwhile, industry sources expected Pertamina to face mounting demurrage claims from its crude and products suppliers, who have been holding back the discharge of cargoes while waiting for delayed letters of credit from the company, Platts reported Wednesday. Suppliers were adamant about not discharging their cargoes unless they had received an "acceptable" letter of credit. "Some crude deliveries have arrived but are not being discharged and we will make demurrage claims against Pertamina for any delays," said one spot crude supplier. Meanwhile Pertamina had received word that the government would pump funds into the company's coffers every ten days to help tide it over its current financial difficulties, sources at the company said Wednesday. The government owed Pertamina Rupiah 24-trillion ($2.5-bil) in fuel subsidies for the first quarter of this year, which it began paying in installments during April. The first tranche of Rupiah 4.1-trillion was paid up last month, followed by another Rupiah 3.3-trillion this Monday.
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