Indonesia Pertamina to Import up to 4 mil Barrels Term Gasoil in November

Indonesian state-owned oil and gas company Pertamina is expected to import up to 4 million barrels of gasoil in November, less than the estimated 5 million barrels for October, a source familiar with the matter said Thursday.

The company's November volumes are expected to be secured via term contracts, like its October cargoes, and it is not likely to come into the spot market, added the source.

 Indonesia's gasoil requirements increased over August-October to more than 4 million barrels per month ahead of the Muslim holiday Eid al-Fitr in September and the annual Haj pilgrimage in November, when travel usually increases.

 It is unclear how much the company needs for December, but volumes are expected to be similar to its November requirements, in line with its usual monthly volumes for this year, said another market source.

 Pertamina's term suppliers for the fourth quarter are Kuwait Petroleum Corporation, South Korea's SK Energy and Unipec, the trading division of Chinese refining giant Sinopec -- who are in total supplying 3.8 million-5.2 million barrels/month of gasoil, Platts reported previously.

Pertamina's gasoil import volumes have retreated significantly over the past few years. In 2008, the company imported an average of 6 million barrels/month, both on a term and spot basis. This was drastically reduced in 2009, which saw average import volumes of 3 million barrels/month as the company grappled with an oversupply of cargoes due to increased gasoil production by domestic refineries amid a drop in domestic demand and a high purchase volume from term suppliers.

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