MOSCOW (MRC) -- PT Pertamina (Persero) declared that the refinery that belongs to PT Trans Pacific Petrochemical Indotama (TPPI) would be operational again next month, said Katadata.
The refinery has stopped once since May 20th 2014 because Pertamina did not extend their cooperation.
Currently Pertamina as the shareholder of TPPI is conducting preparation stage to operate the refinery again. The target is that by the end of this month, the TPPI refinery would be revived so that next month it can start producing. The Pertamina VP Corporate Communication Wianda Pusponegoro said that the refinery operation would start with initial production capacity to be at the level of 20,000 barrels per day (bpd). The production capacity would later on be increased to be at the level of 50,000 to 55,000 bpd.
The TPPI refinery actually owns 100,000 bpd capacity to produce fuel and aromatic. The fuel products are light naphtha, kerosene, gas oil, fuel oil, mogas, and liquefied petroleum gas (LPG). Meanwhile for the aromatic product there are paraxylene, orthoxylene, benzene, toluene, and mixedxylene.
According to the government’s wish, later on the TPPI refinery would be shifted to gasoline mode in order to produce the fuel, which is especially produced for the kind of product that is still being imported in large numbers.
According to Wianda, the TPPI refinery operation must have the government’s support, since the facility would need supplies that could not be relied on only to Pertamina. The government would also need to allocate condensate that has been the government’s portion for the refinery’s raw material, and even more so since condensates are very much needed by the refinery.
Currently, Pertamina is the main shareholder in TPPI, which is 26.6%. The remaining belongs to the Finance Ministry (25%), Argo Capital BV and Agro Global Holdings BV (22%), and Sojitz and Itochu (2%). TPPI also owns a debt to Pertamina in the amount of USD371 million.
As MRC informed earlier, Pertamina signed an agreement to purchase petrochemical products from PTT Global Chemical. The agreement serves as a pre-marketing strategy for Pertamina and PTT’s joint Indonesian petrochemical business. Under the agreement, PTT will deliver at least 5,000 tonnes of polyethylene and polypropylene products each month to Pertamina for sale in Indonesia.
Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).