25 10 2024

Balikpapan Refinery Ready to Support Increasing Indonesia's Energy Resilience

Balikpapan, 25 October 2024 - The Balikpapan Refinery managed by PT Kilang Pertamina Internasional (KPI) will be able to produce fuel equivalent to Euro 5. Thus, the sulfur content in the fuel produced will only have a maximum sulfur content of 10 ppm.

"The Balikpapan Refinery Development Master Plan (RDMP) project not only aims to increase the processing capacity and complexity of the refinery, but this project will increase KPI's ability to produce fuel equivalent to Euro 5," said KPI President Director Taufik Aditiyawarman.

The Balikpapan Refinery's ability to produce fuel equivalent to Euro 5, said Taufik, will certainly further strengthen KPI's steps in supporting the government's roadmap in implementing more environmentally friendly fuel standard regulations. The government itself through the Decree of the Director General of Oil and Gas No. 447.K/2023 and No. 110.K/2022 stipulates Solar/Gasoil and Gasoline/Gasoline fuels with a maximum sulfur limit of 50ppm. The target for the two regulations to come into effect is December 1, 2027 for diesel and January 1, 2028 for gasoline. Currently, KPI products with sulfur content below 50ppm are Pertamax Turbo and Pertamina Dex.

Taufik also explained that the Balikpapan RDMP project has gone through several important phases, including increasing the processing capacity of Crude Oil Distillation (CDU) Unit 4 from 200 thousand barrels per day to 300 thousand per day. So that the total processing capacity of the Balikpapan Refinery is 360 thousand barrels per day.

Along with the increase in the processing capacity of the Balikpapan Refinery, KPI has also prepared a giant-scale tank at the Lawe-Lawe terminal.

"At the Lawe-Lawe terminal, KPI built 2 tank units, each measuring 1 million barrels. This is needed to ensure the inventory system of crude oil raw materials that will be processed at the Balikpapan Refinery," said Taufik.

Strengthening the reliability of crude oil delivery from the Lawe-Lawe Terminal to the refinery in Balikpapan, KPI has also completed the construction of an oil pipeline that will be the delivery channel.

"The construction of the pipeline is carried out along 18.9 km. Of the length of the section, around 4.5 km of the pipe is installed in the waters of Balikpapan Bay near the existing route. This pipe has been installed and is ready to be used," explained Taufik.

After the Balikpapan RDMP project is completed, the Balikpapan Refinery will be able to produce petrochemical products through the Residual Fluid Catalytic Cracking (RFCC) unit.

"RFCC is one of the new units built at the Balikpapan Refinery. After it officially operates, this RFCC will be the largest unit among similar units at other Pertamina refineries," explained Taufik.

The RFCC at the Balikpapan Refinery has a processing capacity of 90 thousand barrels per day. Meanwhile, the RFCC at the Cilacap Refinery has a capacity of 54 thousand barrels per day and the RFCC at the Balongan Refinery has a capacity of 83 thousand barrels per day.

Taufik also expressed his optimism that KPI will be able to complete Pertamina's largest project at this time. "September 2025, hopefully the entire Balikpapan RDMP project can be completed," concluded Taufik.

KPI is a subsidiary of Pertamina that runs its main business of oil and petrochemical processing in accordance with the ESG (Environment, Social & Governance) principles. KPI has also registered with the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles or Ten Principles of the UNGC in its operational strategy as part of the implementation of ESG aspects. KPI will continue to run its business professionally to realize its vision of becoming a world-class Oil and Petrochemical Refinery Company that is environmentally aware, socially responsible and has good corporate governance.

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