Jakarta (VNA) - Taiwanesestate-owned oil refiner CPC Corp. haspledged to invest 22 billion USD in the development of the Balonganpetrochemical refinery, said Coordinating Minister for Maritime and InvestmentAffairs Luhut Binsar Pandjaitan.
In 2018, the company and Indonesia’s oil and gas holding PT Pertamina signed a 6.49billion USD framework agreement for the project.
Under the deal, the two sides will cooperate in building an oil refinery with anannual capacity of at least 1 million tonnes of ethylene and a downstream unitthat will produce other refined derivative products to meet the needs of theworld industry, especially in Indonesia.
Several components of the project will start this year,including completing a pre-feasibility study (FS), starting a bankablefeasibility study (BFS), environmental impact assessment (EIA) and landreclamation. The refinery is expected to start operating in 2026, Pandjaitansaid.
Currently, Pertamina‘spetrochemical processing capacity is only 700 kilotons per annum (ktpa).However, its capacity will increase gradually as the refinery megaproject iscompleted, consisting of two new refineries Tuban and Bontang, and fourrevitalized refineries namely Balikpapan, Cilacap, Balongan, and Dumai.
“In 2026, we will be able to produce around 6,600 ktpa ofpetrochemical products,” the minister said, adding the country spends 3 billionUSD per year to import oil and gas which is almost 70 percent of the country’snational needs.
Previously, the Abu Dhabi National OilCompany (ADNOC) has signed a deal with Pertamina for oil andgas collaboration in both countries. As a part of the 2.5 billion USD deal, thetwo companies will collaborate in building a liquefied petroleum gas (LPG)storage facility in Indonesia./.
In 2018, the company and Indonesia’s oil and gas holding PT Pertamina signed a 6.49billion USD framework agreement for the project.
Under the deal, the two sides will cooperate in building an oil refinery with anannual capacity of at least 1 million tonnes of ethylene and a downstream unitthat will produce other refined derivative products to meet the needs of theworld industry, especially in Indonesia.
Several components of the project will start this year,including completing a pre-feasibility study (FS), starting a bankablefeasibility study (BFS), environmental impact assessment (EIA) and landreclamation. The refinery is expected to start operating in 2026, Pandjaitansaid.
Currently, Pertamina‘spetrochemical processing capacity is only 700 kilotons per annum (ktpa).However, its capacity will increase gradually as the refinery megaproject iscompleted, consisting of two new refineries Tuban and Bontang, and fourrevitalized refineries namely Balikpapan, Cilacap, Balongan, and Dumai.
“In 2026, we will be able to produce around 6,600 ktpa ofpetrochemical products,” the minister said, adding the country spends 3 billionUSD per year to import oil and gas which is almost 70 percent of the country’snational needs.
Previously, the Abu Dhabi National OilCompany (ADNOC) has signed a deal with Pertamina for oil andgas collaboration in both countries. As a part of the 2.5 billion USD deal, thetwo companies will collaborate in building a liquefied petroleum gas (LPG)storage facility in Indonesia./.
VNA
