Potential Big Market, Balikpapan Refinery Prepares Propylene Production

Polypropylene Plaju Refinery. (Doc. Pertamina International Refinery)

JAKARTA - Petrochemical products in Indonesia still have considerable market potential. Through the Refinery Development Master Plan (RDMP) Balikpapan Refinery project, in addition to increasing gasoline and gasoil series production, Pertamina International Refinery (KPI) through its subsidiary Pertamina Balikpapan Refinery (KPB) will also produce petrochemical products. This production will also strengthen the position of KPI in the petrochemical business.

"Operating petrochemical production units is nothing new for KPI," said KPI Corporate Secretary Hermansyah Y Nasroen, Saturday, April 20.

Previously, KPI had also operated petrochemical product production units at several existing refineries.

KPI has refineries that have produced petrochemicals. The Petrokimia Refinery Operation, consisting of the Polypropylene Refinery at the Plaju RU Unit, which produces Polytam (Polypropylene Pertamina), Paraxylene Refinery at the Cilacap Unit RU which produces Paraxylene and Benzene as well as other products, and OCU Refinery (Olefin Convertion Unit) at the Balongan Unit RU which produces Propylene.

"After the Balikpapan RDMP project is completed, in addition to meeting national fuel needs, the Balikpapan refinery will also produce petrochemical products, namely Propylene, amounting to 225,000 tons per year. This product will later become a feedstock for New Polypropylene (PP) Balongan for the substitution of imported products. New PP Balongan is managed by Polytama Propindo, which is an affiliate of Pertamina," said Hermansyah.

The processing capacity of the Balikpapan Refinery, which has been 260,000 barrels, will increase to 360,000 barrels per day. In addition, there will also be a tone of improving the quality of fuel products from Euro II to Euro V.

Hermansyah said, the petrochemical product market in Indonesia still has considerable potential. Data from the Reforminer Institute shows that the current refinery installed capacity, both owned by Pertamina and other private sectors, has not been able to meet the needs of national petrochemicals. About 70 percent of petrochemical needs for domestic and even must be met from imports.

In addition to increasing the processing capacity of the Balikpapan Refinery, the operation of petrochemical production units at the Balikpapan Refinery will also support the development of human resource competencies.

"The operation of petrochemical production units will be new at the Balikpapan Refinery, and this will certainly be a means of transferring knowledge on how to operate petrochemical production units from other refinery unit workers who already have petrochemical production units," Hermansyah concluded.