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Pertamina plans fuel self-sufficiency

PT Pertamina has a long list of downstream projects in the next few years as the state oil and gas company has set a target to stop importing subsidized fuels by 2017

Alfian (The Jakarta Post)
JAKARTA
Fri, June 12, 2009

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Pertamina plans fuel self-sufficiency

PT Pertamina has a long list of downstream projects in the next few years as the state oil and gas company has set a target to stop importing subsidized fuels by 2017.

Director for processing Rukmi Hadihartini said Pertamina targeted that its refineries be able to meet domestic demand for subsidized Premium gasoline, diesel, and kerosene by 2017.

“We expect that Pertamina’s refineries can produce as much as 1.503 million barrels oil per day (bopd) by 2017. This is still lower than the domestic demand forecast of 1.612 million bopd, but we expect the development of alternative energy like biofuel and coal liquefaction will cover the shortage,” Rukmi told lawmakers in a hearing Wednesday.

Pertamina operates six refineries with total installed capacity of 1.031 million bopd. The refineries produce both subsidized and non subsidized fuels.

In 2009, Pertamina’s refineries are expected to produce 831 million bopd of subsidized fuels, while domestic demand for these fuels will reach 1.253 million bopd.

Director for trading and marketing Ahmad Faisal said this year Pertamina estimated it would import 8.8 million kiloliters of Premium gasoline and 6.3 million kiloliters of diesel. “For the kerosene, we no longer need to import as the kerosene-to-LPG conversion program has reduced the demand,” Faisal said.

Rukmi said Pertamina would upgrade the capacity of existing refineries and build new ones to achieve fuel self-sufficiency by 2017.

Pertamina will upgrade the capacity of five refineries: the Plaju refinery, the Cilacap refinery, the Balikpapan refinery, the Dumai refinery, and the Balongan refinery.

Pertamina expects to complete the revamping of the Plaju refinery’s fluid catalytic cracking unit (FCCU) in 2012. It will increase the refinery capacity from 118 million bopd to 138.5 million bopd.

In 2013, Pertamina expects to complete the construction of a residue fluid catalytic-cracking (RFCC) unit at the Cilacap refinery. The new RFCC is expected to increase capacity from 348 million bopd to 410 million bopd.

“We are now in the process of selecting contractors for the project. We expect that construction can

be started by the end of this year,” Rukmi said.

Pertamina will also carry out a bottom upgrading project at the Balikpapan refinery. Pertamina expects to complete the project in 2014. The upgrading will increase the Balikpapan refinery’s capacity from 260 million bopd to 300 million bopd.

Also in 2014, Pertamina expects to complete the revamping of the crude distillation unit (CDU) at the Dumai refinery and the expansion of the Balongan refinery. The CDU revamping will increase the Dumai production capacity from 170 million bopd to 370 million bopd.

The expansion of the Balongan refinery will increase its production capacity from 125 million bopd to 325 million bopd.

Rukmi said Pertamina had also planned to build three new refineries in Cilacap (Blue Sky Cilacap Refinery); Banten (Banten Bay Refinery); and East Java (East Java Refenery).

The Blue Sky Cilacap Refinery is expected to be on stream by 2014 with an installed production capacity of 19 million bopd.

The Banten Bay Refinery is targeted to begin its first production in 2015, with planned installed production capacity of 150 million bopd.

“We are now conducting a bankable feasibility study of the project. We expect to establish a joint venture company for the project in June 25,” Rukmi said.

The East Java Refinery is expected to be on stream in 2017 with planned  installed production capacity of 200 million bopd.

Rukmi said Pertamina was looking for oil companies from the Middle East to cooperate in helping to build these refineries.

“For building new refineries, we need crude supply guarantee for at least 20 years,” she said.

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