Jakarta, CNBC Indonesia – The demand for fuel oil (BBM) in Indonesia continues to increase. According to data from PT Pertamina (Persero), in 2030 domestic fuel demand will increase by 3% to 1.5 million barrels per day.
President Director of PT Refinery Pertamina Internasional (KPI), Djoko Priyono, said that from the domestic fuel demand, the existing oil refineries only produce about 729 thousand barrels per day.
“So there is an opportunity to meet the domestic demand of 830 thousand barrels per day. The way is by increasing the capacity of the refinery, or we continue to import,” said Djoko on the sidelines of a visit to the Refinery Development Master Plan (RDMP) project or the expansion of the Balikpapan refinery, Saturday (8/8). 1/2022).
Not only fuel, petrochemical products produced through refineries also continue to increase in demand. So far, petrochemical products have become the raw material for making plastic or textile products.
Pertamina data states that domestic demand for petrochemical products such as polypropylene, polyethylene, paraxylene and benzene will increase by 5% in 2030 to 7,646 kilo tons per year. Meanwhile, the domestic refinery production capacity is only 1,660 kilo tons per year. So there is a need for 5,986 kilo tons per year which could be Pertamina’s business opportunity by increasing the capacity of the refinery.
“Therefore Pertamina will develop the capacity of its refineries and require a total refinery investment of US$ 43 billion (around Rp 602 trillion),” said Djoko.
The following are Pertamina’s refinery development plans:
1. Cilacap Biorefinery (Central Java)
2. Plaju Biorefinery (South Sumatra)
3. RDMP Dumai (Riau)
4. RDMP Plaju (South Sumatra
5. RDMP Cilacap
6. RDMP Balikpapan (East Kalimantan)
7. Balongan Petrochemicals
8. Olefin TPPI
9. Revamp TPPI
10. GRR Tuban Factory (new factory)
Through this development, Pertamina’s national refinery capacity could increase to 1.4 million barrels per day, and the current 1 million barrels per day. Fuel production will also increase to 1.2 million barrels per day, from 700 thousand barrels per day currently.
Then petrochemical production will increase to 8,000 kilo tons per year, from the current capacity of 1,660 kilo tons per year. Then the quality of fuel products for all refineries will increase from EURO II to EURO V.
Nearby, in April 2022, the production capacity of the Balongan refinery will increase to 150 thousand barrels per day from 125,000 barrels per day, through the refinery development project.
Then in October 2023, the production of the Balikpapan refinery will increase from 260 thousand barrels per day to 360 thousand barrels per day, with a large total project value of US$ 7 billion or Rp 100 trillion.
So what if the trend of future fuel use declines due to the energy transition?
President Director of PT Pertamina (Persero), Nicke Widyawati, said that like it or not, refineries must be built to reduce imports due to increasing domestic demand. Even though fuel consumption will decline later, Nicke said, Pertamina’s refinery production can be shifted from fuel to petrochemicals which are industrial raw materials.
(wed/wed)
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