Russia’s rare exports of naphtha and fuel oil to Indonesia increase, diversifying its buyer base and signalling shifts in Asia’s energy market.
Russia exported rare shipments of naphtha and fuel oil to Indonesia in September 2023, expanding its customer base in Asia amid shifting global oil markets, according to data from LSEG. In a notable transaction, the tanker Marlin Hestia carried 58,200 metric tons of naphtha from Novorossiisk, Russia’s Black Sea port, on September 1, arriving at the Anyer Terminal on Java island in Indonesia on October 18.
The cargo was reportedly intended for Chandra Asri, a major petrochemical complex in Banten, Indonesia, though the company did not respond to requests for comment. The export is part of Russia’s strategy to broaden its oil product sales as the country navigates the European Union’s embargo on Russian oil products, which took effect in February 2023.
In a similar delivery, the tanker Yannis P transported around 100,000 tons of fuel oil from Russia’s Baltic port of Ust-Luga to Indonesia’s Karimun port in October. The identity of the buyer remains undisclosed, but these shipments mark a significant increase from previous years. Russia had exported only 60,000 to 85,000 tons of fuel oil to Indonesia prior to 2023, while naphtha imports from Russia totalled 220,000 tons through May and June in just three shipments.
Historically, Indonesia has sourced oil products from regional suppliers like Saudi Arabia, Malaysia, Singapore, and the UAE, maintaining a neutral stance and abstaining from Western sanctions on Russian energy products. However, in a sign of Indonesia’s increasing interest in Russian oil, state-controlled refiner Pertamina added Russian crude oil to its tender lists for September 2024, a first in over a decade.
Russia’s pivot to Asia has increased its oil exports to the region as other markets decline due to sanctions. With China, Russia’s main fuel oil buyer, potentially scaling back purchases amid new tax reforms impacting import costs, Russia’s expansion into Southeast Asian markets like Indonesia may become increasingly significant.
