Khor Reports comment: In Indonesia biodiesel policy implementation, the likes of Wilmar and Musim Mas will be tussling with big buyers like PERTAMINA and PLN over pricing and policies. In Malaysia, the big biodiesel players will have to contend with PETRONAS. Malaysia's subsidized regime (being rolled back) raises questions over what happens in scenarios when prices are high; would the blend be pulled back to 3% in extreme circumstances as suggested by a speaker at the recent MPOC Kuching fourm? New policies, new players and new contestations.
17 February 2014, extracts from Platts article on 2nd Indonesia biodiesel tender: "Indonesia's Pertamina has secured around 2.4 million kiloliters, or 45% of the 5.4 million kl of biodiesel it sought in a tender for deliveries in 2014 and 2015, market sources said Monday, some citing e-mails they received from Pertamina. The state-owned oil and gas company is expected to re-issue a tender for the balance requirement for the two years, the sources said. Price and volume negotiations were conducted privately, with a few sources saying that Pertamina likely bought at a premium to Mean of Platts Singapore 0.25% sulfur gasoil assessments in the latest tender round, unlike the first round where it bought at a discount. The country's number one and two biodiesel producers in terms of volume, Wilmar and Musim Mas, were awarded significant volumes, some sources said, but this could not be confirmed............... Under the new decree on the biodiesel mandate, a copy of which was obtained by Platts, the proportion of biodiesel blending in gasoil was being gradually raised from September last year and will eventually reach 25% in the transport, industrial and commercial sectors by 2025, and 30% in the power sector by 2016." -- Esther Ng @Platts.com
Other newslink: http://www.thejakartapost.com/news/2014/02/17/pertamina-misses-biodiesel-tender-target.html
17 February 2014, extracts from Platts article on 2nd Indonesia biodiesel tender: "Indonesia's Pertamina has secured around 2.4 million kiloliters, or 45% of the 5.4 million kl of biodiesel it sought in a tender for deliveries in 2014 and 2015, market sources said Monday, some citing e-mails they received from Pertamina. The state-owned oil and gas company is expected to re-issue a tender for the balance requirement for the two years, the sources said. Price and volume negotiations were conducted privately, with a few sources saying that Pertamina likely bought at a premium to Mean of Platts Singapore 0.25% sulfur gasoil assessments in the latest tender round, unlike the first round where it bought at a discount. The country's number one and two biodiesel producers in terms of volume, Wilmar and Musim Mas, were awarded significant volumes, some sources said, but this could not be confirmed............... Under the new decree on the biodiesel mandate, a copy of which was obtained by Platts, the proportion of biodiesel blending in gasoil was being gradually raised from September last year and will eventually reach 25% in the transport, industrial and commercial sectors by 2025, and 30% in the power sector by 2016." -- Esther Ng @Platts.com
Other newslink: http://www.thejakartapost.com/news/2014/02/17/pertamina-misses-biodiesel-tender-target.html