Indonesia plans to export diesel fuel, avtur.

28, Feb 2017 | Author: Embassy of Indonesia

Source: The Jakarta Post

State-owned energy giant Pertamina is looking forward to tapping into the Philippine market with its diesel fuel and aviation turbine fuel (ATF), or avtur, that will be produced at the Bontang grass roots refinery (GRR) project in East Kalimantan, which is expected to begin operations in 2023.

“All the gasoline production would be used for domestic consumption. But Pertamina projects that there will be 35 percent overproduction for diesel and avtur that would be absorbed domestically,” Pertamina processing and petrochemical megaproject director Rachmad Hardadi said over the weekend as reported by kompas.

“The Philippines is a potential market,” he added.

Bontang GRR [grass roots refinery] project, which was designed to produce various type of fuel such as liquefied petroleum gas (LPG), gasoline series, avtur, diesel series and petrochemical products, could provide a new opportunity for Pertamina to start fuel exports.

“After the project finishes in 2023, it will change Indonesia’s status from a fuel importer to an exporter,” Rachmad said.

The Bontang refinery in East Kalimantan will have an initial production capacity of 300,000 barrels of oil per day (bopd).

The development of the refinery is part of Pertamina’s long-term plan to increase its domestic refinery capacity to more than 2 million bopd in the next decade.

The Bontang refinery is among 10 priority infrastructure projects that President Joko ‘Jokowi’ Widodo has requested be accelerated.

According to an official statement by the Office of the Coordinating Economic Minister, the Bontang refinery requires investment amounting to between Rp 75 trillion (US$5.62 billion) and Rp 140 trillion.

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