Pertamina Balikpapan Refinery Development Project Pursues Target

Source: 6/30/2021, Location: Asia

In line with one of the focuses of the Government of Indonesia's policies this year, namely economic recovery amid the challenges of the pandemic, Pertamina as a state-owned company continues to carry out the mandated national strategic projects. One of the mandated national strategic projects is the Refinery Development Master Plan (RDMP) project, namely the development of an oil and petrochemical refinery in Balikpapan.

Since forming the Subholding Refining and Petrochemical (R&P), Pertamina has focused the implementation of this mandate on PT Kilang Pertamina Internasional (KPI) as the holding company for the oil refinery and petrochemical business so that the Balikpapan RDMP project runs more agilely and quickly.

The project will increase refinery capacity, improve product quality, and reduce the cost of production of fuel oil (BBM) which will encourage an increase in foreign exchange and tax revenues. This effort is carried out in order to realize energy independence and reduce the current account deficit (CAD), by reducing imports of fuel and petrochemical products significantly.

The Corporate Secretary of PT KPI Subholding Refining & Petrochemical, Ifki Sukarya, said that the Balikpapan and Lawe-lawe RDMP projects are one of Pertamina's largest projects designated as National Strategic Projects (PSN).

Ifki further explained, The Balikpapan Refinery RDMP project consists of two phases. In phase 1, which is targeted for completion in 2024, the Balikpapan Refinery RDMP will increase the production capacity of the RU V Balikpapan Refinery from 260 kilo barrels per day/kbpd (thousand barrels per day) to 360 kbpd and produce quality products that meet Euro V standards. The Euro V standard itself has the main advantage that it is more environmentally friendly with higher quality fuel oil with a more efficient consumption level.

In phase 2 which is targeted for completion in 2026, continued Ifki, the Balikpapan RDMP project will increase the flexibility of crude oil supply so that refineries will be able to process more crude oil available in the market at more economical prices, namely sour crude oil with sulfur content. (sulfur) as much as 2%.

In this project, there is also the development of a number of supporting facilities at the Lawe-Lawe Terminal, namely the construction of two crude oil storage tanks with a capacity of 1 million barrels each, the construction of a crude oil supply receiving facility from the tanker chapel called Single Point Mooring (SPM) with a capacity of 320,000. deadweight tonnage, as well as construction of onshore and offshore pipeline facilities from SPM to Lawe-Lawe Terminal and and from Lawe-Lawe Terminal to Balikpapan Refinery.

Ifki revealed that until the end of June, the Balikpapan Refinery RDMP had progressed by 35.74% in physical development. PT Refinery Pertamina Balikpapan (PT KPB) as the person in charge of the project has held an acceleration meeting with a joint operation (JO) project implementer.

The Balikpapan RDMP project has also achieved a number of milestones in the Balikpapan RDMP. Until the end of the first quarter yesterday, the project had achieved several milestones, namely Delivery 3 Units of Boiler (in February 2021); Delivery Alkylation Reactor (March 2021)," explained Ifki.

Still according to Ifki, in this 2nd quarter, the milestones that have been achieved are the Operational Acceptance of Flare Relocation (April 2021) and the delivery of 5 Steam Turbine Generator units (June 2021).

For the sake of the country's energy independence and to maintain the profitability of the Balikpapan Refinery, the RDMP still has to go fast with the right steps. The refinery is profitable, the nation is profitable," concluded Ifki.

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