We expect this program will be immediately followed by other refinery units across Indonesia.
Jakarta (ANTARA) - PT Kilang Pertamina Internasional (KPI) Cilacap Unit, a state-owned refining and petrochemicals business group of PT Pertamina (Persero), will soon build a liquefied natural gas (LNG) terminal to improve efficiency.

"The utilization of refinery fuel from crude oil is still quite large. It can be made efficient by making a diversion to natural gas which is cheaper and cleaner," president director of KPI, Djoko Priyono, said in a statement released here on Thursday.

He informed that the company has entered into an agreement with PT Perusahaan Gas Negara (PGN) for supply of natural gas to realize the terminal development plan.

"Actually, the idea has been around since 2018. Hence, the agreement that has been established with PGN will be immediately realized and targeted to be on stream in 2023," he added.


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Besides being used as refinery fuel, natural gas will also be used for treating the units in need, Priyono said.

The operation of the Cilacap refinery has so far only relied on fuel oil and gas from the refinery since it did not have any natural gas source, he noted.

Later, the business activities of the refinery will convert the fuel oil to fuel, thus it can be a more valuable product, he added.

Meanwhile, managing director of PGN, Haryo Yunianto, emphasized that the enterprise was ready to provide its best service in meeting the natural gas demand from the Cilacap refinery.

"As the gas supplier, we are committed to fulfilling the demand of the consumer – which is PT Pertamina (Persero). We expect this program will be immediately followed by other refinery units across Indonesia," he added.

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The Cilacap refinery is one of six refineries of PT Pertamina and has a processing capacity of 270 thousand barrels per day.

It has around 200 tanks to accommodate crude oil, which is processed into fuel. The tanks are also used to contain gas, officials said.

The refinery also has strategic value as it supplies 44 percent of the national fuel demand and 75 percent of fuel needs on Java Island, they added.

In addition, it is the nation’s only refinery that produces asphalt and base oil.


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Translator: Sugiharto Purnama, Uyu Liman
Editor: Fardah Assegaf
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