Pertamina set to start Balikpapan refinery upgrade project in December

By Bonha Ventura Sebayang

Petromindo

State-owned oil and gas firm PT Pertamina said it is ready to start construction of the Balikpapan refinery upgrade and expansion project in December of this year.

?We have sent a letter to Minister of Energy and Mineral Resources Ignasius Jonan that we?re ready for groundbreaking in December of 2017,? said Pertamina President Director Elia M. Manik said.

Jonan said earlier that the government wants Pertamina to proceed with the estimated US$4.6 billion Balikpapan refinery expansion project in East Kalimantan as planned and expected the first stage to be completed in 2019 and the second stage in 2021.

Jonan said that the upgrading of the Balikpapan refinery will increase the refinery's capacity from the current 260,000 bpd to 360,000 bpd. The fuel products to be produced by the upgraded refinery will meet the Euro 5 specifications, compared to the current Euro 2 specifications.

Editing by Reiner Simanjuntak