- Last week, Bloomberg reported that Pertamina may get 70% of its biodiesel requirements from its second tender.
- The second tender involved a total of 3.3mil kilolitres (1.17mil tonnes) of biodiesel for a year’s supply.
- The tender rate of 70% is expected to translate into 815,769 tonnes of biodiesel. Indonesia’s CPO production is forecasted to be between 28 and 30mil tonnes in 2014F.
- The results for the second tender are expected to be released in a few weeks’ time.
- Recall that Pertamina only received 582,692 tonnes or 25% of its biodiesel requirements in the first tender last year. The first tender involved 6.6mil kilolitres (2.3mil tonnes) of biodiesel for two years.
- The poor response to the first tender was partly due to the pricing of the biodiesel, which was not attractive enough for the producers.
- In total, Pertamina is expected to receive about 1.4mil tonnes of biodiesel from its first and second biodiesel tenders.
- Jakarta Post reported that Indonesia’s Perusahaan Listrik Negara (PLN) has signed agreements with three palm oil producers to supply biodiesel to its power plants. PLN is Indonesia’s state utility.
- The size of the biodiesel supply is small.
- Sinar Mas Agro Resources and Technology will supply about 3,320 tonnes while Wilmar Group will supply about 3,400 tonnes.
- Finally, Bloomberg reported that China’s palm oil inventory at the ports fell to 950,000 tonnes for the week ending 20 January 2014 compared with 970,000 tonnes at end-December 2013.
- Palm oil inventory was about 1.14mil tonnes in the same week last year.
Source: AmeSecurities
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