Pertamina Brings Good News: Balikpapan Refinery Development Project Exceeds Target

President Director of Pertamina, Nicke Widyawati. (Photo: Doc. Antara)

JAKARTA - The progress of the Balikpapan Refinery Development Master Plan (RDMP) at the end of 2021 was recorded as successfully exceeding the projected target of 45.54 percent, but the realization was 47 percent. This achievement includes 4 main components, namely engineering, procurement, construction, and commissioning.

"An achievement that is higher than our forecast target. Looking at the progress of on-track refinery development, we are optimistic that the Balikpapan RDMP project can be on stream according to the target in 2024," said Nicke Widyawati in a written statement, quoted on Tuesday, January 11.

Along with the implementation of the Balikpapan RDMP, Pertamina is also expanding the construction of a crude oil terminal at Lawe-Lawe in North Penajam Paser Regency. This project includes an offshore and onshore pipeline with a total length of 41 km and two giant tanks with a total capacity of 2,000,000 barrels which will be the supporting components of the Lawe-Lawe Terminal.

The 9 milestones that were successfully completed throughout 2021 were the first Delivery of 3 Units of Boiler and Lawe-Lawe pipes in February 2021. Second, Delivery of Alkylation Reactor in March 2021. Third, Operational Acceptance of Flare Relocation in April 2021 and the fourth Delivery of 5 Steam Turbine units Generators in June 2021.

In the second half of 2021, Pertamina has also succeeded in completing 5 milestones, namely, Delivery of C3 Splitter and mechanical completion of RFCC Feed Tank (July 2021), Delivery of RFCC Disengager/Stripper and Regenerator and installation of Alkylation Reactor (August 2021).

Alkylation Reactor is an important component in producing alkylate which can later produce Euro 5 standard gasoline products.

In September 2021, Pertamina succeeded in commissioning the RFCC Feed Tank and installing Steam Turbine Generator A, followed by the Completion Assembly Ringer Crane of 2,800 tons and the installation of Propane/Propylene Splitter in October 2021.

Installation of 'Column Propane' or 'Propylene Splitter', an important equipment that functions to separate propylene products from propane products.

At the end of 2021, Pertamina succeeded in completing the 9th milestone, namely the commissioning of the RFCC Feed Tank and the installation of the RFCC 1st Regenerator. According to Nicke, after completion of the Balikpapan RDMP as a whole, it is projected to reduce the current account deficit to US$ 2.65 billion per year.

The oil and gas balance deficit can be reduced by substituting imported products with high selling value products such as Gasoline with EURO V Quality and also Petrochemical Propylene products whose demand is still very high.

RDMP Balikpapan is Pertamina's effort to increase refinery capacity from 260 thousand barrels to 360 thousand barrels. In addition, Pertamina's largest infrastructure development project also aims to increase the complexity of the refinery in optimizing the use of raw materials and in producing high quality products and will ultimately increase national energy security as mandated by the company as a National Strategic Project (PSN).

"Through the Balikpapan RDMP, non-fuel products such as LPG will increase rapidly by 48 kilo tons per year to 384 kilo tons per year. Parallel, fuel products such as Gasoline, Diesel and Avtur also increase dramatically with total production to 319 thousand barrels / day ," said Nick.