Govt Wants Tuban Refinery to Run This Year
26 January 2015 14:16 WIB
TEMPO.CO, Jakarta - The government expects the oil refinery owned by PT Trans Pacific Petrochemical Indotama (TPPI) in Tuban, East Java, can contribute to the national production soon. Finance Minister Bambang Brodjonegoro is targeting the refinery to start operating this year, with state-run oil and gas company Pertamina acting as the off-taker.
Bambang said that this year Tuban refinery will process approximately 45,000 barrels of oil per day, almost half of its full capacity.
Meanwhile, Pertamina's processing director Hardadi Rachmat said if the government authorizes the company to manage TPPI's refinery, they will be able to convert the use of RON 88 gasoline (Premium) to RON 92 (Pertamax) in less than two years.
Pri Agung Rakhmanto, executive director of the ReforMiner Institute, said that with a production capacity of just 700,000 barrels of naphtha per month, TPPI refinery is only capable of producing 20,000 bpd of RON 92, far below the national fuel demand of 1.5 million bpd.
Pri suggests Pertamina to look for other refineries if they really want to migrate to RON 92 within two years. "The TPPI refinery is only useful to increase supplies," he said.
BERNADETTE CHRISTINA MUNTHE | ROBBY IRFANY
