Adaro & Shell invest US$40 million

PT Adaro Energy Tbk IBT through its subsidiary firm, PT Indonesia Bulk Terminal (IBT), plans to build fuel storage facility jointly with PT Shell Indonesia worth US$40 million.
President Director of Adaro Energy Garibaldi Thohir said the agreement of both sides are deemed the efforts to boost up efficiency of coal supply chains.
IBT 100 percent shares indirectly are owned by Adaro Energy and deemed the coal terminal operator in Pulau Laut on the southern islands.
IBT port has the capacity of 12 million tons of coal and accommodates 80,000 DWT (dead weight tonnage) ship.
"IBT has signed fuel facilities agreement with Shell Indonesia in a bid to support the growing traffic in IBT terminal and increase the income of liquid bulk jetty operational activities," he said last week.
The agreement was signed in Jakarta September 1, 2009 by Chia Ah Hoo as President Director of IBT and Darwin Silalahi as President Director and Country Chairperson of Shell Indonesia.
Shell will build fuel storage terminal with minimum capacity of 60,000 tons in fuel tank facility areas of IBT in Pulau Laut, South Kalimantan.
IBT will later build joint facility in the IBT terminal area which could be used by Shell and is allocated for loading and uploading of fuel products from the fuel storage facility to the ship or barge.
Shell will operate the fuel storage facility up to 2022 and then transferred to IBT. Following the transfer, Shell could use the facility to store and handle fuel.