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Pertamina begins Balongan refinery upgrades
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A worker rides a bicycle at the Balongan oil refinery owned by Pertamina in Indramayu, West Java. (Antara/Rivan Awal Lingga)
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tate-owned oil and gas firm Pertamina officially started construction on Thursday of a submarine pipe line and single-point mooring at the Balongan refinery in West Java, part of the company’s grand plan to upgrade and construct several refineries across the nation.
The groundbreaking ceremony was attended by Energy and Mineral Resources Minister Ignasius Jonan, State-Owned Enterprises Minister Rini Soemarno and Pertamina acting president director Yenni Andayani.
“I appreciate Pertamina’s efforts to improve existing refineries with the submarine pipe line and single-point mooring projects,” Jonan said in a press release received by The Jakarta Post.
(Read also: Licensors for Cilacap, Tuban refineries to be selected in 1st half)
“We support efforts to upgrade the nation’s refineries, whether through the company’s refinery development master plan or its new grass roots refineries,” he added.
The two facilities are expected to help Pertamina increase the effectiveness of loading and unloading activities and decrease the costs of transporting crude oil as the lay time of tanker ships will be much shorter after the completion of these projects.
Construction costs are expected to reach Rp 1.79 trillion (US$134.2 million).
Pertamina wants to upgrade and construct six refineries across the nation in order to increase its fuel self-sufficiency and the quality of its products.
Currently, Pertamina’s refineries have a production capacity of one million barrels of oil per day (bopd).
The new developments are expected to boost production to more than 2 million bopd by 2025. (bbn)
