Pertamina: Pertamina Completes 9 Milestones, Balikpapan Refinery Development Project Exceeds Target

Amid the ongoing challenges of the Covid-19 pandemic, Pertamina has succeeded in completing 9 milestones in the Balikpapan Refinery Development Master Plan (RDMP) mega project. The progress of Balikpapan’s RDMP at the end of 2021 was recorded successfully exceeding the projected target of 45.54%, its realization was 47%. 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, President Director of Pertamina during a site visit to the Balikpapan RDMP project, Saturday, January 8, 2022.

Along with the implementation of the Balikpapan RDMP, Pertamina also expands the construction of a crude oil terminal at Lawe-Lawe in the 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 were completed throughout 2021: first, the Delivery of 3 Units of Boiler and pipes in Lawe-Lawe in February 2021. Second, the Delivery of Alkylation Reactor in March 2021. Third, the Operational Acceptance of Flare Relocation in April 2021, and fourth, the Delivery of 5 units of Steam Turbine 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’, important equipment utilized to separate the propylene product from the propane product.

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 the completion of the Balikpapan RDMP as a whole, it is projected to reduce the current account deficit to USD 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 which demand is still very high.

Nicke added that Pertamina’s high commitment to reducing the oil and gas balance deficit was shown through the on-track project progress.

RDMP Balikpapan is Pertamina’s effort to increase refinery capacity from 260 thousand barrels to 360 thousand barrels. Moreover, 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 increased dramatically with a total production of 319 thousand barrels per day,” said Nicke.