Alter its success In the Asia Pacific market, Pertamina Lubricants expands its market to Europe and Africa through primary export to Switzerland and South Africa which have a big potency in lubricant oil business. Switzerland and South Africa are the 23rd and 24th export destination countries of Pertamina’s lubricant oil. Primary export to Europe and Africa indicates that Pertamina’s lubricant oil product is well accepted in the global market, Pertamina’s Vice President Corporate Communication, Ali Mundakir, told Business News (11/9).
The opening of European market with Switzerland as its gateway is connected to the attempt of introducing Pertamina’s lubricant oil brand through various marketing activities in Europe, amongst ethers, through the Fastron Euroasia Expedition, World Rally Championship, and participation of Pertamina’s young racer, Rio Haryanto. Export development activity which is quite rampant in 2012 with the opening of new markets accelerated increase of market awareness of the existence of Pertamina Lubricants.
Utilizing market situation momentum in Europe which has started to shift to high-quality and affordable products, Partamina partnered with indonalclini Group Swiss SA In development of Pertamines lubricant oil In Europe with Switzerland as the primary market. Switzerland has strength from the aspect or customer tax and capacity of marketing officers who commonly master four languages, namely English, Carman, Italian, and French so it will enable introduction of product brand to surrounding countries.
The European market is very potential, especially West Europe where lubricant oil potency reaches 5.2 million kilo liter a year with the composition of 46% automotive lubricants and the remaining industrial, marine and mining lubricants. At the beginning stage, leading products to be exported by Pertamina are automotive lubricants, amongst others, Fastron Series, Prima XP, and Mesran shipped in 2 containers or 32,000 liter through Genova Port, Italy.
Pertamina’s product being accepted in European market proves competitiveness of Pertamina’s lubricant oil in a highly mature and competitive market. Gradually, we will increase variety of products to be exported and will move to Industrial and marine lubricants.
And, Pertamina also sees lubricant oil market potency in Africa which has a demand growth of 2.6% a year with current market potency at around 1.8 million kilolitre a year. African countries with the highest lubricant oil demand consist of Nigeria, South Africa, Alegria, Morocco, and Egyp.
South Africa who is the host of World Cup 2012 has a quite significant market potency reaching 300 - 400 million liter a year and with vehicle population reaching 2.1 million vehicles. Sounding of South African market has been started since April 2012 through trade mission of the Trade Ministry to South Africa.
Marketing cooperation will be conducted between Pertamina and National Plasterer Group, one of the main business groups in Cape Town with the introduction of Pertamina’s product in Cape Town and Western South Africa. The strength of Pertarnina’s lubricant oil product in entering the South African market is the use of high quality base oil which is a concern to South African consumers.
At the preliminary stage, Pertamina shipped 1 container of Fastron Synthetic, Mesran-based products and Meditran SX 15W-40 based diesel lubricant with total volume of 12,000 liter. Various strategies taken by Pertamina Lubricants in entering South African market are, amongst others, by utilizing the Black Economic Empowerment (BEE) policy by partnering with native entrepreneurs. And, penetration to South African market will become a leverage in market development in other regions of the African continent.
Utilization of gas in Java for power plant is potential to save up to Rp21.4 trillion. Central Processing Plant (CPP) Gas Area Gundih has entered construction stage. The CPP is part of Java Gas Development Project (PPGJ) managed by Pertamina EP to meet demand of gas supply to steam-fueled power plant (PLTGU) Tambak Lorok in Semarang, Central Java. Gas utilization from this area provides efficiency of cost of oil fuel for power plant which reaches Rp21.4 trillion in 12 years.
The saving potency is the difference between cost of utilization of HSD and natural gas as fuel for electricity generation. Based on calculation of comparison of heating value, natural gas is 26.31 times higher than HSD. Heating value of HSD per liter is 9,100 Kcal, while heating value of natural gas could reach more than 239,000 Kcal. Based on assumption of 50 MMscfd gas supply for power plant in Tambak Lorok, saving potency could reach Rp5,4 billion a day or around Rp21.4 trillion in 12 years. This is one of the contributions of Pertamina EP to support government’s attempt in conducting gas utilization and cost efficiency in energy sector.
CPP, which is on construction stage, is planned to become a gas processing facility from Kedungtuban, Randublatung, and Kedunglusi structures in Area Gundih, Blore Regency with a processing capacity of 70 MMSCFD. And, net gas after processing is 50 million MMSCFD flowed to PLTGU Tambak Lorok with a12-year contract period. The gas will be flowed through pipes by PT Symber Petrindo Perkasa as buyer.
In the construction of CPP, Pertamina EP prioritizes empowerment of local workers as an added value to company operational activity to the local community. In this activity, portion of local workers involved Is around 30% for skilled works and 100% for unskilled works.
The Java Gas Development Project begins from the identification of gas reserve in Kedungtuban, Randublatung, and Kedunglusi structures in Central Java. The aim of this projections to develop, process, and produce gas in Ares Gundih according to field aconornicity to be sold to consumers at a volume of 50 MMSCFD which is scheduled to come on stream by 2013.
Business New - November 14, 2012