Indonesia’s Krakatau Steel company reported supply of 40,000 MT of HRC to the local oil and gas company Pertamina gas as per the new signed contract. Pertimina gas will purchase 40,000 MT of Krakatau Steel’s Hot Rolled Coil (HRC).
The HRC purchase plan will be used later for the rokan block oil pipeline replacement project which set to begin work at the end of 2019. The rokan oil block is the second largest oil block in Indonesia, with a pipeline length upto 200 kilometers projected to be completed in 2021.
Purwono Widodo, Marketing Director of the Krakatau Steel said that they are very grateful that Pertagas has strong desire to show synergy, not merely to priortize profit. With the support of synergy of Pertimina gas and Pertagas, it is hoped that they (Krakatau Steel) will be stronger.
The production capacity of KS HSM factory is 200,000 MT per month, and demand for 40,000 MT is believed to be completed, he added.
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