Indonesian energy company Pertamina completes $7.4 billion upgrade of Indonesia’s largest refinery
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Recently, Indonesia’s **energy company Pertamina announced that the Balikpapan refinery, located in East Kalimantan Province, has completed an upgrade worth $7.4 billion. As a result, its daily processing capacity for crude oil has increased from 260,000 barrels to 360,000 barrels, making it Indonesia’s largest refinery facility. It is reported that this upgrade is aimed at meeting Indonesia’s growing energy demand and reducing its reliance on imports. After the renovation, the refinery will be able to produce 92, 95, and 98 octane gasoline, with an annual production capacity of up to 5.8 million liters, which will help reduce Indonesia’s reliance on gasoline imports. The project also includes the capability to produce fuel with a lower sulfur content, and it will increase the annual production capacity of liquefied petroleum gas (LPG) from 48,000 tons to 384,000 tons, which is expected to reduce LPG imports by 4.9%. The energy sector says that, with the mandatory biodiesel blending policy, Indonesia will be able to stop importing diesel, and cease importing aviation fuel by 2027. In addition, as part of the upgrade project, new petrochemical production facilities were built, which can produce 283,000 tons of petrochemical products per year, including 225,000 tons of propylene.
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