RI has first export-oriented oil refinery<\/p>\n
JAKARTA (JP): President Soeharto finally dedicated on
\nWednesday yesterday the country's first export-oriented oil
\nrefinery at Balongan, West Java, after more than three months of
\ndelay.<\/p>\n
Soeharto said that the operation of the newly completed
\nrefinery will play a vital role in the development of the
\ncountry's oil industry.<\/p>\n
\"Besides having a large processing capacity, the refinery is
\nalso capable of producing environment-friendly fuel oil,\" he said
\nin his address at the official opening of the Balongan refinery,
\nwhich is also called Exor I.<\/p>\n
The President was originally scheduled to inaugurate the
\nrefinery plant on Jan. 30 but damages taking place during the
\nplant's trial operation caused the delay of its dedication.<\/p>\n
The construction of the plant started in September, 1990 and
\nwas completed in August last year at a total cost of around US$2
\nbillion.<\/p>\n
The refinery, with a processing capacity of 125,000 barrels
\nper day (bpd), is designed to produce 136,000 tons of liquefied
\npetroleum gas (LPG), 186,000 tons of propylene per year, 54,500
\nbpd of aviation gas, 10,437 bpd of kerosene, 24,500 bpd of
\nautomotive diesel fuel, 14,890 bpd of industrial diesel fuel and
\n7,200 bpd of decant oil as well as 27 metric tons of sulfur per
\nday.<\/p>\n
Soeharto said that an additional supply of LPG from the newly
\ncompleted refinery is expected to reduce the use of kerosene,
\nwhich is still commonly utilized as cooking fuel in most parts of
\nthe country.<\/p>\n
The government has set up two main programs in conserving
\nfossil fuel energy such as through energy diversification and
\nconservation.<\/p>\n
\"The concrete results of the energy diversification program is
\nthe increase in the use of natural gas and geothermal sources as
\nforms of energy,\" the President said.<\/p>\n
He said that there are abundant sources of natural gas in the
\ncountry to support the energy diversification and conservation
\nprograms.<\/p>\n
Small-scale natural gas wells such as those in West Java are
\ndeveloped for industrial and transportation and household use,
\nwhile the production from larger ones such those in Bontang in
\nEast Kalimantan is used for exports, he said.<\/p>\n
The diversification of the use of natural gas will indirectly
\nraise the country's crude oil export capacity as the rise in the
\nuse of natural gas will significantly lower domestic demand for
\noil.<\/p>\n
The Exor I project was constructed by the JGC Corporation of
\nJapan at a cost of approximately US$2 billion, with financial
\nassistance from Java Petroleum Investment Co. Ltd. -- a
\nconsortium grouping Mitsui Corp., Marubeni Corp., Sumitomo, C.
\nItoh & Co. (now Itochu) and 20 Japanese banks.<\/p>\n
Pertamina currently operates refineries in Pangkalan Brandan
\nwith a processing capacity of 5,000 bpd, in Dumai of Riau with
\n170,000 bpd, in Musi of South Sumatra with 132,500 bpd, in
\nCilacap of Central Java with 300,000 bpd, in Balikpapan of East
\nKalimantan with 253,600 bpd and in Cepu of East Java with 3,800
\nbpd.<\/p>\n
In addition to the Exor I plant, Pertamina also plans to build
\nthree other export-oriented refineries, including Exor II with
\na processing capacity of 120,000 bpd in Irian Jaya, Exor III with
\n120,000 bpd in Tanjung Uban of Riau and Exor IV with 140,000 bpd
\nin Dumai. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-has-first-export-oriented-oil-refinery-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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