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Jakarta Post

Pertamina picks Siemens to supply machinery for Balikpapan refinery

  • Norman Harsono

    The Jakarta Post

Jakarta   /   Wed, June 3, 2020   /   04:03 pm
Pertamina picks Siemens to supply machinery for Balikpapan refinery Balikpapan refinery: Through the refinery development master plan (RDMP), state-owned oil and gas holding company PT Pertamina will increase the capacity of its Balikpapan refinery by around 38 percent. This is part of Pertamina’s efforts to boost national energy security. (Courtesy of Pertamina/.)

Indonesian state-owned oil and gas giant Pertamina has chosen German engineering company Siemens to supply key machinery for its oil refinery in Balikpapan, East Kalimantan.

Siemens will supply 17 gas compressors and ten pieces of electricity generation equipment, including gas turbines, steam turbines and a hot gas expander, to the refinery, according to a company statement from May 28.

The move is part of Pertamina’s refinery development master plan (RDMP) to upgrade four refineries, including the one in Balikpapan, to help the oil company meet the country’s growing fuel demand without increasing fuel imports.

The new equipment “will enable a cost-effective expansion of the Balikpapan refinery and contribute to the success of Pertamina’s RDMP,” said Matthew Chinn, EVP of new equipment solutions for Siemens Energy oil and gas division, in the statement.

The compressors will move gaseous substances, such as liquefied petroleum gas (LPG) and sulfur emissions, both of which are byproducts of oil refining, within the facility. Meanwhile, the electricity generation equipment will power internal operations.

The installation and commissioning of the equipment is slated for 2022.

The expansion of the Balikpapan refinery, with an estimated cost of US$5.3 billion, is slated to increase the facility’s production capacity by 40 percent to 360,000 barrels per day once fully upgraded in 2026, according to the RDMP.

The project will also enable the refinery to produce high-quality fuel of the Euro V standard.