(EnergyAsia, February 25 2014, Tuesday) — Indonesia’s state-owned Pertamina said it is investing more than US$150 million to expand the fuels storage capacity on two islands in the Riau region located to the south of Singapore.

The company said it will invest US$95 million to nearly triple its storage capacity on Sambu Island from 210 million litres to 600 million litres by 2018, with the first stage expansion to 300 million litres set for completion in 2016. The terminal, built by a private company in 1897 and acquired by the Indonesian government in 1965, will also provide diesel and marine fuel blending services.

Pertamina is also investing US$62 million to increase the storage capacity at Tanjung Uban as part of five-year plan to expand Indonesia’s total capacity from 4.5 billion litres to 7.5 billion litres by 2019.

The expansion is aimed at meeting Indonesia’s energy security needs as well as fuel demand generated by the growing shipping traffic through the Straits of Malacca. Most ship operators buy their fuel from Singapore which has one of the largest fuel storage tank farms in Asia.