(EnergyAsia, June 30 2011, Thursday) — Pertamina, Indonesia’s state oil and gas company, is looking to expand its oil storage capacity as a hedge against supply disruption and rising prices.

The company is exploring the possibility of building new crude and crude products storage tanks in new locations like Sambu Island in the Riaus and Tanjung Uban in Bintan Island, both located near Singapore, and Lawe Lawe in East Kalimantan.

Pertamina CEO Karen Agustiawan said the new storage tanks will enable the company to better manage its fuel inventory and costs, and even engage in trades to take advantage of price fluctuations.

The company has allocated US$4 billion for capital spending this year, and expects to more than double that to US$9 billion in 2012 to boost domestic oil and gas production.