TWU plans to build two refineries

PT Tri Wahana Universal (TWU) plans to build two oil refineries, each with capacity of 50,000 bpd as part of expansion strategy, Bisnis Indonesia reported on Thursday.

The paper quoted TWU President Director Rudi Tavinos as saying that the company has completed technical study for the planned project, and is currently still in the process of assessing the appropriate locations for the new refineries, each to be located in the eastern part and central part of Indonesia.

He said each refinery will comprise of four trains. Required investment for each refinery is estimated at US$800 million.

Rudi said that planned refineries, which will use crude cocktail as feedstock, will produce benzene, diesel fuel, marine fuel oil, and LPG.

TWU operates a mini oil refinery with capacity of 18,000 bpd in Bojonegoro Regency, East Java Province, which resumed production in September after receiving crude supply from PT Pertamina EP Cepu.

The refinery had suspended production since January of this year due to disagreement between the firm and crude supplier on the price of the crude after an earlier crude sale and purchase agreement expired. (*)