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Pertamina, Rosneft to proceed

with $16bn refinery in East Java

INVESTMENT INDONESIA and Russia are set to proceed energy industry thinking for nearly a decade
with a $16bn petrochemical refinery project to and was part of Pertamina’s refinery develop-
be located in East Java, according to reports in ment plan, which called for the revitalisation
regional media. State-owned companies Per- and expansion of five existing refineries and the
tamina and Rosneft formed a Jakarta-based joint construction of two new ones. The project was
venture – PT Pertamina Rosneft Pengolahan dan given priority status by the government in 2016.
Petrokimia – in 2017 to oversee the construc- However, considering global steps now being
tion and operations of the New Grass Refinery urged and taken in efforts to reduce the use of
Root (NGRR) near Tuban City, according to the hydrocarbons and forestall climate change, it Medium and
Straits Times. remains to be seen just how far Indonesia will go
The new facility will produce 229,000 bar- with its refinery plans. heavy sulphur
rels per day (bpd) of fuel and raw materials for Pertamina signed a memorandum of under-
the petrochemical industry, including gasoline, standing (MoU) in 2005 with China’s Sinopec to crude oil grades
diesel and jet fuel. Investment in the project will evaluate the feasibility of the refinery. It signed
be covered 55% by Pertamina and Rosneft will another such deal with Saudi Aramco Asia in are to be the
furnish 45%, according to the new reports. 2012, but then partnered with Rosneft in 2017. feedstock for the
A final investment decision (FID) on the pro- The original plan for the 841-hectare (8.4
ject was to be made in 2021 and start-up will take square km) complex called for a refinery with a refinery.
place in 2024. A new timetable for the project capacity to process 300,000 bpd of oil, an aro-
has yet to be released. According to a comment matics complex with a 1.3mn tonne per day
made by an Indonesian official to the Straits capacity and an integrated petrochemical plant
Times, the project is still on track, but Rosneft for ethylene production with a capacity of 1.1mn
has been delaying its decision in order to benefit tpd.
from tax holidays. Medium and heavy sulphur crude oil grades
NGRR will produce Euro V quality motor are to be the feedstock for the refinery, which
fuels for the East Java and Nusa Tenggara regions will include a number of units for environmen-
and petrochemicals for the country’s entire pet- tal processes such as sulphur recovery, sour
rochemical market. It is expected to enable Indo- water stripping, amine recovery and wastewa-
nesia to greatly reduce its reliance on imported ter treatment. It will also have facilities to meet
fuels. environmental requirements such as emissions
The new refinery has been part of Indonesia’s reduction and waste by-products.™

Week 28 15•July•2022 www. NEWSBASE .com P9