In a matter of months, RI will have a giant oil refinery News – 1 hour ago

Jakarta, CNBC Indonesia – PT Pertamina (Persero) will soon complete the oil processing mega project, namely the Refinery Development Master Plan (RDMP) Balikpapan, East Kalimantan.

In the next few months, to be precise in April 2024, the Balikpapan RDMP project is targeted to start operating.

Pertamina President Director Nicke Widyawati revealed that the Balikpapan RDMP project will increase the crude oil processing capacity at the existing refinery by 100 thousand barrels per day (bpd) from the current capacity of 260 thousand bpd to 360 thousand bpd.

With this capacity, the Pertamina Fuel Oil (BBM) Refinery in Balikpapan will become the largest refinery in Indonesia.

Currently, the status of the largest fuel refinery is held by the Cilacap Refinery, Central Java, which is also operated by PT Kilang Pertamina Internasional (KPI), Subholding Refining & Pertamina Petrochemical. The Cilacap refinery currently processes 345 thousand bpd of oil.

“We plan that in April 2024, Indonesia will have an additional capacity of 100 thousand barrels per day, bringing the total to 1,125,000 barrels per day,” explained Nicke at the DPR RI Commission VII Hearing Meeting, Jakarta, quoted Thursday (23/11/2023 ).

Apart from increasing capacity, Nicke explained, the Balikpapan RDMP project will also continue with the second phase, namely by improving the quality of fuel with sulfur content reduced by up to 99% from the initial 2,500 PPM to 10 PPM.

The increase in fuel quality to Euro V standards is targeted to be completed in November 2024.

“And for the next one, the quality improvement will be completed in November 2024,” he added.

Nicke said that overall integration with existing refineries will be completed in 2025.

“However, with this milestone, we ensure that the benefits this country can receive will be better,” he stressed.

Previously, PT KPI President Director Taufik Aditiyawarman said that after increasing capacity in April 2024, the Balikpapan RDMP project will continue with RFCC operations in August-September 2024.

“Starting operations for the crude distillation unit, God willing, in April 2024, then there will be an RFCC (Residual Fluid Catalytic Cracking) in August September 2024, then there will be a gasoline block in January 2025,” explained Taufik to CNBC Indonesia in the Sustainable Future program, Friday (29/9/2023).

This project worth US$ 7.2 billion or around Rp. 108 trillion (assuming an exchange rate of Rp. 15,000 per US$) can produce fuel products in accordance with international standards, namely Euro 5. This is also assessed in accordance with the standards set by the Ministry of Environment and Forestry (MoEF).

“We are concerned about the environment, that is part of the vision to become Euro 5, meaning the sulfur content will be 10 ppm,” he added.

In the future, this project, which is part of the National Strategic Project (PSN) of President Joko Widodo’s (Jokowi) government, will also have a multiplier effect by absorbing as many as 20 thousand workers. This project also adds skills to the workforce, which is claimed to be very rare in Indonesia.

“Of course, I think the economic activity generated by the Balikpapan RDMP project is very large. From the Domestic Component Level (TKDN), it is almost 33%. With 33% of the calculated project value, how much is it for Indonesia,” he said.

This project is divided into two, namely to increase capacity and improve fuel quality plus increase petrochemical and LPG products.

As is known, the Balikpapan RDMP is the largest project in Pertamina’s history. RDMP Balikpapan has a total of 5,203 equipment weighing up to 110,000 tons.

The heaviest equipment is the Residual Fluid Catalytic Cracking (RFCC) First Regenerator with a weight of 1,099 tons. Meanwhile, the highest equipment is Propane/Proylene with a height of around 110 meters. RDMP Balikpapan will increase Pertamina’s refinery processing capacity by 100 thousand barrels per day, so that it will also reduce fuel imports.

[Gambas:Video CNBC]

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