President Susilo Bambang Yudhoyono, at podium, inaugurated a $1.4 billion upgrade project at a Pertamina oil refinery in Cilacap, West Java, on Wednesday. (Antara Photo) |
Related
articles
- SBY Must Help Us Get Justice, Abuse Victims Say
- Pertamina Courts Saudi Oil Company
- Pertamina May Import More Fuel
- First Lady Hospitalized: SBY
- President Warns Against Police’s Excessive Force
Pertamina,
the state-controlled Indonesian oil and gas company, has begun a $1.4 billion
project to upgrade an oil refinery in Cilacap, Central Java, with President
Susilo Bambang Yudhoyono inaugurating the project’s groundbreaking on
Wednesday.
The company
is upgrading its refinery into a residual fluid catalytic cracking plant that
can convert crude oil and its residual components into higher-value products
such as gasoline, liquefied petroleum gas and propylene.
The
refinery, which can currently process 348,000 barrels of crude oil per day,
will be able to process an extra 62,000 barrels a day after the upgrade.
“Refineries
are an important chain of Pertamina’s downstream sector business,” Karen
Agustiawan, Pertamina’s president director, said in a speech. She added that
the refinery’s “commercial operation is expected [to begin] by the end of
2014.”
“More than
that,” she said, “Pertamina’s refineries play a vital role in the nation’s
energy security.”
Pertamina
has six refineries with a total processing capacity of one million barrels per
day, and the company produces 41 million kiloliters of gasoline per year.
However,
the nation’s fuel consumption has reached 56 million kiloliters of gasoline per
year and is expected to increase at an annual average rate of 4 percent.
Indonesia must import oil products to fill in the production gap.
The Cilacap
refinery produces 3.8 million kiloliters of gasoline every year. The upgrade
will boost the refinery’s annual production by 1.9 million kiloliters.
State
construction firm Adhi Karya and Goldstar of South Korea won an engineering
procurement contract worth $931 million to lead the refinery upgrade project.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.