TPPI plant resumes operation, able to save $2.2b in forex reserves

PT Trans Pacific Petrochemical Indotama (TPPI) has resumed the operation of its refinery and petrochemical plant in Tuban, East Java after years of stoppage, allowing state owned oil and gas firm PT Pertamina (Persero) to significantly cut its oil fuel and LPG imports, the Ministry of Energy and Mineral Resources said in a statement on Wednesday.

The operation of the TPPI plant allows Indonesia to save its foreign-exchange (forex) reserves by US$2.2 billion per year as a result of the reduction of the fuel imports, Pertamina?s President Director Dwi Soetjipto said on Wednesday in a ceremony attended by President Joko Widodo.

Dwi said TPPI is able to produce 61,000 bpd of Premium gasoline, 10,000 bpd of HOMC and 11,500 bpd of diesel oil and 480 metric tons per day of LPG.

?The operation of the TPPI plant does not only allow us to save $2.2 billion in forex reserves per year, but also creates positive sentiments for investment, labor and others,? Dwi said, adding that the plant directly employs 700 people and create jobs for 2,000 people living in surrounding areas to support the plant?s operation.

TPPI is able to process 100,000 bpd of condensate and/or naphtha. If the raw material is processed through mogas mode, the plant will produce oil products such as LPG, diesel oil, fuel oil, Premium gasoline and HOMC. If the raw material is processed through aromatic mode, it will produce petrochemicals, such as paraxylene, orthoxylene, benzene and toluene, which are in high demand in the local industries.

Editing by Johannes Simbolon