Pertamina builds new grease, lube oil blending plants

PT Pertamina Lubricants, a subsidiary of state-owned oil and gas firm PT Pertamina, is investing Rp 1.3 trillion to develop new grease plant and lube oil blending plant (LOBP) in Tanjung Priok, Jakarta, Bisnis Indonesia reported on Monday.

Pertamina Director for Commerce and Marketing, Hanung Budya said that construction of the new Rp 500 billion grease plant, which will have a capacity of 8,000 tons per year, will be started soon and to be completed in June of 2015, which is dubbed to be the most modern in Southeast Asia.

Pertamina currently operates a 3,000-ton per year grease plant.

Hanung said that Pertamina Lubricants is currently in the process of developing a new 350,000-ton per year LOBP, with investment of Rp 800 billion, and is expected to be completed end of this year. The company currently operates two LOBPs in Cilacap and Gresik.

Last year, Pertamina?s lubricant sales volume was recorded at 585,000 kilo liters, of which about 60-65 percent was sold in the domestic market, with the remainder went to the export market. (*)