Indonesia’s state-owned PT Pertamina (Persoro) and PT Trans-Pacific Petrochemical Indotoma (TPPI), a subsidiary of PT Tuban Petrochemical Industries, have resumed limited operations at TPPI’s Tuban refining and petrochemical complex in East Java Province.
The refinery’s restart is part of a tolling agreement between TPPI and Pertamina following the approval of a restructuring plan related to TPPI’s 2012 bankruptcy.
Under terms of the agreement, Pertamina will operate the refinery for 6 months, affording TPPI the opportunity to gain income through the tolling fee from the collaboration to help meet debt payment obligations, according to a recent release from Pertamina.
During the 6-month operational period, the plant will run at a capacity of 55,000-80,000 b/d to produce a total of 530,000 tonnes of refined petroleum products, according to Pertamina. Yields will include about 2.8 million bbl of light naphtha, 1.5 million bbl of gas oil and fuel oil, and 36,000 tonnes of LPG, the state-owned company said.
Pertamina also confirmed it will supply feedstock in the form of condensate and naphtha to the Tuban plant, which houses a 100,000-b/d condensate splitter that started up in 2006 (OGJ, Dec. 15, 2008, p. 44).
“The reoperation of the Tuban TPPI refinery holds a very important role for supplying and developing petrochemical and fuel industries in Indonesia,” Pertamina said in the release, reiterating the importance of the plant’s operation in helping reduce imports of fuel, LPG, and other petrochemicals into the country.
Over the last decade, Pertamina has planned several projects aimed at reducing fuel imports into Indonesia by boosting domestic supplies, the most recent of which involves modernization of five of the company’s existing refineries in the country (OGJ Online, Oct. 7, 2013; Aug. 30, 2013; Mar. 3, 2009; Feb. 15, 2009; Feb. 15, 2006).