Pertamina, SK Energy plan to build asphalt refinery

State-owned oil and gas firm PT Pertamina has signed an MoU with South Korea?s SK Energy to carry out feasibility study for a planned asphalt oriented refinery plant.

Pertamina said in a statement on Thursday that the planned refinery plant will have a capacity of 1.5 million tons per year. The two companies have agreed that they will proceed with plan only after gaining good results from the feasibility study.

The feasibility study will be conducted at Pertamina?s Unit IV Cilacap refinery in West Java, the location of which is considered strategic in terms of making supply to the domestic and export markets, the company said.

Pertamina said the country?s national consumption of asphalt reached 1 million tons in 2012, increasing by about 26 percent compared to the level a year earlier of 802,850 tons.

?When the project (asphalt refinery plant) is realized, we can secure supply for domestic demand of asphalt particularly to boost infrastructure development,? Pertamina Processing Director Chrisna Damayanto said.

Editing by Reiner Simanjuntak