PT. Oiltanking Karimun (“PTOTK”) and Matrix Global Holdings LLC (“Matrix”) have established a partnership to develop an auction program for storage capacity at PTOTK’s facility on Karimun Island in Indonesia. Using Matrix’s proprietary auction platform, PTOTK explores to offer refined product storage capacity for amounts and terms to be determined by PTOTK.
Depending on the outcome of the exploration study and the traction from the market, PTOTK and Matrix aim to run the first auction for its fuel oil storage capacity by the end of 2021. The auction date, auctioned capacity, terms and process will be announced as soon as the parties agreed to proceed with the project. With this collaboration Oiltanking intends to build on the company’s first successful online electronic auction for Jet Fuel/USLD storage capacity at Oiltanking’s Copenhagen facility in November 2020, using Matrix’s auction platform. This auction was the first of its kind by Oiltanking to sell a term contract for individual refined products tank capacity through a competitive bidding process.
“By developing a digital auction platform for PT. Oiltanking Karimun and partnering with Matrix, Oiltanking has achieved another important milestone in its digitalization and innovation roadmap, thereby supporting Oiltanking’s vision of being the preferred partner in energy logistics. We will continue to develop innovative ways, together with partners, that will allow us to even better serve our valued customers around the world,” said Andy Loh, Head of Commercial, Oiltanking Asia Pacific. PT. Oiltanking Karimun is a joint venture between Oiltanking GmbH and Gunvor Group. The Karimun facility, which is strategically located within the Straits Hub, has a total storage capacity of 730,000 cbm and serves the growing demand for petroleum products in Asia.
“We are proud to partner with PTOTK. We believe that our model of offering storage in a transparent, standardized manner will bring value to the facility by reducing credit exposure, enabling access to more participants and realizing the optionality embedded in the forward value of storage. We are continuing to expand our innovative model both domestically and internationally,” said Richard Redoglia, CEO of Matrix Global. a