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Fire at Pertamina’s Cilacap refinery may deter investment: Experts
The fire on Saturday was the second incident at the Cilacap refinery this year, showing a pattern that might affect investors’ confidence levels.
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This aerial photo shows a tank in Pertamina's Cilacap oil refinery in Central Java after a fire that broke out in the refinery on Nov. 13, 2021 had been successfully extinguished. (Courtesy of Pertamina/Handout)
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recent fire at the Cilacap oil refinery in Central Java may hinder investment in Indonesia’s downstream oil and gas industry as it was the second time a blaze struck the facility this year, potentially eroding investor confidence, experts say.
The latest fire broke out in tank 36T-102, which contained 31,000 kiloliters of gasoline ingredients, at around 7:20 p.m. on Saturday, and was extinguished by 7:45 a.m. on Sunday, according to the refinery’s operator, state-owned oil and gas company Pertamina.
Pertamina did not shut down refinery operations and gave an assurance that gasoline supplies were sufficient, but experts have pointed out that Saturday’s fire was the second time the Cilacap refinery caught fire this year, and at least the seventh time since 1995.
Read also: ‘No shutdown’ at Cilacap refinery after blaze: Pertamina
The Cilacap refinery, which is the biggest in the country by capacity, also saw a fire break out in tank T-205 in June this year.
“The incident could potentially undermine investors’ confidence in Pertamina as the company may be considered unable to manage its refineries,” said Energy Watch executive director Mamit Setiawan to The Jakarta Post on Monday.
He suggested Pertamina’s refinery arm, PT Kilang Pertamina Internasional (KPI), evaluate its health, safety and environment (HSE) management and inspect all existing workers and equipment, especially lightning rods, which are the usual suspect in tank fires.
