JAKARTA (TheInsiderStories) - PT Pertamina and Saudi Aramco signed a head of agreement (HoA) for the implementation of the upgrading of Refinery Unit IV Cilacap, which is part Refinery Development Master Plan (RDMP), with an estimated investment of $5.5 billion.
The HoA was signed by Pertamina’s President Director Dwi Soetjipto and President and CEO of Saudi Aramco Amin al-Nasser, witnessed by Vice President Jusuf Kalla and a number of Working Cabinet members in Cilacap.
Dwi said the upgrading of the RU IV Cilacap will allow the company to increase in the total capacity of the crude distillate units (CDU) from approximately 345,000 barrels per day (bpd) to 370,000 bpd, the complexity of the refinery increased from 3 to 9 as well as improve product value added from 73 percent to 96 percent.
The expansion plan set out in the RDMP consists of three parts, namely expansion on primary unit through revamping of the CDU II and maximization of CDU I; secondly on secondary unit by revamping the RFCC capacity from 62,000 bpd to 81,000 bpd and the installation of hydro cracker new unit with a capacity of 43,000 bpd ; and thirdly upgrading of petrochemical unit through increase the paraxylene production capacity from 280,000 bpd to 485,000 bpd and the construction of a new polypropylene production plant to increase the production of polypropylene into a 153,000 kilo tonnes per year.
“The project is targeted to be completed and operational in 2021,” said Dwi.
After signing the HoA, Pertamina and Saudi Aramco will carry out site preparation and basic engineering design next year. If the front end engineering design (FEED) can be completed in 2017 and followed by the EPC works in 2018, the RU IV Cilacap upgrading project could be completed and start operating by the end of 2021.
At the same day, the Vice President inaugurated the operation of RFCC plant, which allows the Cilacap refinery to produce high-octane gasoline. The operation of RFCC Refinery Unit IV in Cilacap will jack up Premium fuel production of the company to 91,000 bpd, from 61,000 bpd at present, which will help Pertamina to cut fuel imports.
When reaching its full operation, RFCC plant will produce 37,000 barrels of HOMC per day, 1,066 tons of LPG per day and 430 tons propylene per day.
RFCC will process feed stock in the form of low sulfur waxy residue at a volume of 62,000 barrels per day, which previously processed through Crude Distillation Unit (CDU) II, into a high value added products, namely HOMC. The RFCC will also able to increase the LPG production as well as produce new product Propylene.
Pertamina spent US$846.89 million to develop the RFCC plant, which was constructed by consortium of Adhi Karya, state owned construction company and GS Engineering & Construction.
RFCC has 21 units of equipment has successfully began its maiden product on Sept. 30, 2015.
Most of the HOMC product will be further processed into Premium fuel. At present, Premium fuel production of Cilacap refinery reached 61,000 barrels per day. With the operation of RFCC, Premium fuel production will increase to 91,000 bpd, helping Pertamina to cut fuel imports. (*)