Pertamina needs $20 billion to increase refineries? capacity

State owned oil and gas firm PT Pertamina needs US$20 billion to expand its fuel production from 800,000 barrels per day (bpd) to 1.6 million bpd.

In a workshop titled ?Pertamina Energy Outlook 2015?, Pertamina?s Business Development Senior Vice President Iriawan Yulianto said Pertamina is planning to upgrade its refineries in order to meet the national energy needs in the future.

In the first phase, it will upgrade three refineries, namely Balongan in West Java, Cilacap in Central Java, and Balikpapan in East Kalimantan. The work is expected to be completed in 2020-2021. In the second phase, it will upgrade two refineries, namely Dumai in Riau and Plaju in South Sumatra. The work is expected to be completed in 2025.

?To realize the project, Pertamina needs $20 billion or around Rp 240 trillion funds. The EPC tender will start next year,? he said.

He said the national energy consumption has increased each year. In 2025, the national energy demand is predicted to reach 7.7 million barrels of oil equivalent per year with oil and gas accounting for 47 percent of the energy mix.

At present, Pertamina produces 800,000 bpd of oil products. Through the Refining Development Master Plan (RDMP) and Grass Root Refinery (GRR), the firm plans to increase the production to 1.6 million bpd in 2025. The plan is part of Pertamina?s vision to become ?Asian Energy Champion?, which is able to compete against world-class energy firms,, the firm said.

Pertamina now operates six refineries with a combined capacity of 1.046 million bpd. Two refineries, Plaju and Cilacap, is integrated with petrochemical plants, thus producing petrochemicals such as Purified Terapthalic Acid (PTA) and Paraxylene aside from oil fuels. Other refineries, such as Pangkalan Brandan and Mundu, also produces LGP aside oil fuels.

Aside from refineries, Pertamina has two LNG operating companies, namely PT Arun LNG, which operates the Arun LNG regassification plant in Aceh with a capacity of 12.5 million tons per year; and PT Badak LNG, which operates the Bontang LNG plant in East Kalimantan with a capacity of 22.5 million tons per year.

Editing by Johannes Simbolon