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HomeNewsIndonesia's Pertamina to start Balikpapan upgrade in 2019

Indonesia's Pertamina to start Balikpapan upgrade in 2019

11/28/2018 10:27:11 AM

JAKARTA, (Reuters) - Indonesian state energy company PT Pertamina will sign an engineering, procurement and construction (EPC) contract to upgrade Balikpapan refinery in December, Chief Executive Nicke Widyawati said.

Balikpapan refinery upgrade is expected to start construction earlier next year, Senior Vice President Daniel Purba said.

First stage of Balikpapan upgrade is scheduled for operation in 2021 to produce Euro V standard fuel, and stage 2 in 2022 to convert its use to process sour crude, from currently processing medium heavy crude.

Pertamina also aims to sign framework agreement with a partner in December to build new Bontang refinery, Widyawati said.

Meanwhile, Pertamina will convert its Plaju and Dumai refineries to “green refineries” to produce palm-based fuels, Widyawati said, adding Pertamina will sign an agreement with Italian energy company ENI in December to help with the conversion. (Reporting by Wilda Asmarini; Editing by Gopakumar Warrier)

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