Indonesia's Pertamina, CPC to sign initial petrochemical plant agreement
Indonesia last week announced 89 priority projects worth $97 billion to be rolled out over four years.
Among them is Pertamina’s plan to upgrade its Balongan refinery and transform it into a $12 billion petrochemical complex together with Taiwan’s CPC.
“Today, there will be a signing of the head of agreement cooperation between Pertamina and CPC... for the building of the petrochem plant which will be integrated with the Balongan fuel refinery,” Pertamina megaprojects and petrochemicals director, Ignatius Tallulembang, told reporters on Friday, adding the project is set to be completed in 2026.
The petrochemical plant is part of an upgrade to the Balongan refinery, which will see an increase in capacity from 125,000 barrels per day (bpd) to 150,000 bpd when it completes its first phase in 2022, Tallulembang said.
Pertamina is also working with Abu Dhabi National Oil Company (ADNOC) on the project. ADNOC is currently working on a feasibility study which is expected to be concluded in August, he added.
In January, ADNOC and Pertamina signed a memorandum of understanding to also explore the development of the Balongan petrochemicals complex.
Last week, Pertamina said it will develop its Cilacap refinery in Central Java “independently” as talks about a joint venture with Saudi Aramco fell through.
Tallulembang also said on Friday it had put its $10 billion refinery project in Bontang, East Kalimantan on hold. (Reporting by Wilda Asmarini; writing by Fathin Ungku Editing by Ed Davies)
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