Strengthening Energy Resilience, Pertamina Continues to Increase Refinery Production Capacity
Jakarta, April 3, 2024 - The oil and gas (O&G) business is one of the main pillars in upholding the nation's energy sovereignty. One component of the O&G business chain is crude oil processing into petroleum and non-petroleum products at Pertamina's refineries. To support this, Pertamina, through PT Kilang Pertamina Internasional (KPI), is striving to increase refinery production capacity.
"Pertamina continues its efforts to increase refinery capacity. From 2019 to 2023, Pertamina has increased production capacity at existing refineries to 126.2 thousand barrels per day and has increased petrochemical production to 180 thousand tons per year," said the Corporate Secretary of KPI, Hermansyah Y Nasroen.
Several capacity enhancement projects were undertaken during the 2019 to 2023 period, including the Cilacap Langit Biru project in August 2019, which increased production capacity from 23 thousand barrels per day to 53 thousand barrels per day. This project also improved the products’ quality from Euro II to equivalent Euro IV.
Additionally, there was the RDMP Balongan Phase 1 project in June 2022. In this project, the production capacity of the Crude Distillation Unit (CDU) was increased from 125 thousand barrels per day to 150 thousand barrels per day.
Currently, KPI is also undertaking efforts to increase its production capacity through the Refinery Development Master Plan (RDMP) project in Balikpapan. The project is reaching a new milestone with the Turn Around (TA) Revamp program implementation.
"Currently, KPI has a processing capacity of around one million barrels per day. The TA Revamp being carried out by KPI aims to integrate existing refinery units with new refinery units resulting from the RDMP project."
The RDMP Balikpapan project is one of the largest investments undertaken by Pertamina. It is also one of the projects with high complexity. "The RDMP Balikpapan project is one of high complexity because we are constructing new refinery units alongside or even intersecting with existing refineries. We must ensure the project progresses while the existing refineries continue to operate," explained Hermansyah.
Hermansyah also stated that the RDMP Balikpapan project success will increase the Balikpapan refinery's production capacity to 360 thousand barrels per day from the initial capacity of 260 thousand barrels per day. "With a capacity increase of 100 thousand barrels per day, the Balikpapan refinery will become the largest refinery owned by Pertamina," added Hermansyah. Besides increasing oil processing capacity, there will also be additional petrochemical production of up to 225 thousand tons per year.
"KPI, as part of Pertamina, becomes a pillar of energy resilience with its refined refinery products. Therefore, increasing production capacity is one of the company's strategies for continuous growth," Hermansyah added.
The RDMP Balikpapan project is targeted to be completed by 2025. "We seek support and prayers from all Indonesians for the smooth progress of the project and for the entire project to be completed on time," concluded Hermansyah.
In a separate statement, Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, said that Pertamina continues to strive to increase refinery capacity with products of international standard quality.
"The refinery project is ongoing, thus gradually increasing refinery capacity and further strengthening national energy resilience," emphasized Fadjar.
PT Kilang Pertamina Internasional (KPI) is a subsidiary of Pertamina engaged in the main businesses of oil processing and petrochemicals following ESG (Environmental, Social & Governance) principles. PT KPI is also registered with the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles of the UNGC in its operational strategy as part of the ESG aspects’ implementation. KPI will continue to conduct its business professionally to realize its vision of becoming a world-class Oil and Petrochemical Refinery Company with environmental awareness, social responsibility, and good corporate governance.