Pertamina: Three Refineries Will Be Built To Reduce The Oil Imports

Development of oil refinery and fuel processing which is planned by PT Pertamina (Persero) in the country was only able to suppress reduction of fuel imports for 25 percent of current oil imports more than 40 percent to 15 percent.

"Construction of the refinery was to decrease the gap between imports and domestic production capacity," said Director of Marketing and Commerce Pertamina Achmad Faisal at the Department of Energy and Mineral Resources Jakarta, Monday, August 31, 2009.

Faisal said, the current domestic premium consumption reached 123.889 million barrels, while domestic refinery capacity 68.553 million barrels, as well as domestic premium consumption growth per year to reach 5.68 percent. However, with the construction plan of new refineries and additions of refinery capacity from Balongan, premium production is estimated to be 164.999 million barrels.

Faisal admitted, if the refinery capacities are to be constructed may be enlarged in the future Pertamina does not need to import more premium, we can even exports Minyak Solar / High Speed Diesel. "In 2017, if the refinery is completed, the production of diesel fuel could reach 200.840 million barrels. Meanwhile, domestic consumption 171.893 million barrels," he said.

Pertamina plans to build three refineries, ie Bojonegara with a capacity 300 thousand barrels per day (bpd) of early stage will be built with a capacity of 150 thousand bpd and is expected to operate in 2015. Development of Tuban refinery with a capacity of 300 thousand bpd and is targeted to start operating in 2016, and the expansion of Balongan refinery with a capacity of 200 thousand bpd and is targeted to start operating in 2015.

On the same occasion, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the slow realization of the construction of oil refineries, among others due to the amount of investment needed and the low of margins.

"Therefore, in order to support the development of an oil refinery in cooperation with BKPM, Directorate General of Oil and Gas, Ministry of Finance, BPH Migas and Pertamina to discuss incentives support for refinery investment," he said.