Pertamina seeks to expand asphalt production capacity

Indonesia’s state-owned PT Pertamina and South Korea’s SK Energy Co. Ltd. have signed a memorandum of understanding to conduct a feasibility study for a 1.5 million-tonne/year asphalt plant at Pertamina’s 348,000-b/d Cilacap refinery on Java, Indonesia.

The Cilacap refinery was chosen because, in addition to having the most strategic position for both domestic and export markets, a lube oil complex at the refinery already is producing asphalt, according to Pertamina.

If results of the feasibility study are positive, the companies will establish a joint venture for the project, Pertamina said.

According to Pertamina, in 2012, Indonesia’s asphalt consumption reached about 1 million tpy, up by 26% from 2011.

With total asphalt production capacity at the Cilacap refinery reaching only 321,000 tpy in 2012, the additional 1.5 million tpy in capacity would provide a secure supply to meet Indonesia’s domestic asphalt needs, Pertamina said.

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