Mon, 17 May 2004

Pertamina to boost unleaded gasoline output

Fitri Wulandari, The Jakarta Post, Indramayu, West Java

State oil and gas firm PT Pertamina aims to boost the production of environmentally friendly unleaded gasoline in the future.

Edi Setianto, general manager of Pertamina's Balongan refinery in Indramayu, West Java, said although the current consumption rate was still low, demand for the product would continue to grow.

"We will enjoy an increased profit margin by producing unleaded gasoline," Edi said over the weekend.

"In the future, we will focus on producing Pertamax and Pertamax Plus," Edi said, referring to two of the company's unleaded gasoline products.

The Balongan refinery, which has a production capacity of 125,000 barrel per day, is one of seven oil refineries owned by Pertamina and supplies oil-based fuel for Jakarta and West Java.

The refinery has a daily production of 20,313 kilo-liters, which consists of a range of fuel products. Pertamax and Pertamax Plus only make up 4.6 percent (1,060 kl) and 0.87 percent (265 kl) of total production, respectively.

The refinery's main products are premium gasoline (7,822 kl), diesel fuel (5,529 kl) and kerosene (1,958 kl).

Balongan is the largest refinery in the world that uses residue as feed stock. Its Residue Catalytic Cracking (RCC) unit, which processes oil-based products, has the capacity to go through some 83,000 bpd of oil.

The refinery now has three reactors to produce the High Octane Mogas Component (HOMC), the main ingrediant for making unleaded gasoline.

Edi said Balongan was constructing three new reactors, expected to be completed in 2005, which would help increase the production of unleaded gasoline.

The development of the new plants was in line with the government's Blue Sky plan to reduce air pollution caused by leaded gasoline. The government wants Indonesia to be lead-free by 2005.

Pertamina began selling unleaded gasoline in July 2001 in several areas in the country, including Jakarta, Cirebon in West Java and Bali. But Pertamina either imports the gasoline or produces it here with some imported raw materials.