Analysis of Economical Project Development of Land Fuel Storage in Oil and Gas Upstream Industry Case study Gasoline Filling Depot in Jambi Province

Abstract

Activities of oil and gas production are a complex series of processes involving various activities of oil and gas industry from upstream to downstream. Upstream business in oil and gas activities include the activities exploration, exploitation  through drilling activities and completion of wells, mean of transportation, storage and processing of separating and refining of oil and gas in the oil field. Downstream activities includes processing through the activities of oil refineries to produce fuels and their derivatives and marketing and distribution through the activities of storage. The high mass needs gasoline and kerosene (BBM) is a result of economic growth and domestic income and the growing automotive industry. This can be seen from the consumption of fuel in recent years. In the year 1999 and the consumption was 23.9 million kl, but a year later increased 26.2million kl. For 2004, the transportation sector's fuel consumption has reached 30.7 million kiloliters, and is predicted to continue rising within by incoming years, and in the next 10 years, transportation energy consumption is expected to increase two-fold. Growth in the period2000-2010 increased by an average of 7.3% per year. Accelerating the development of the fuel distribution infrastructure would be more effective for PT.Pertamina (Persero) with the distribution entrance into the business portfolio by inviting participation of private or third party investors through mutual cooperation. Provision of this infrastructure can be pursued by building of oil and gas processing facilities or refineries (oil & gas processing plant), oil and gas storage facilities (oil & gas storage / depots), oil and gas transportation facilities (oil & gas transporter delivery) and commercial facilities general / limited oil and gas (oil & gas trading).

Keywords : Downstream oil and gas business, Distribution infrastructure, Energy security, Fuel Oil Storage