Pertamina Signs Design Procurement Contract for Olefin TPPI Project
Jakarta, December 14, 2021 – PT Pertamina (Persero) through Subholding Refining & Petrochemical, PT Kilang Pertamina Internasional (PT KPI) is fully committed to carry out the government's assignments to complete refinery and Petrochemical mega projects. PT KPI prepares the construction of olefin and aromatic production facilities in the TPPI area, Tuban Regency, East Java by signing a work contract for the procurement of Basic Engineering Design Package (BEDP), Front End Engineering Design (FEED) And Engineering, Procurement & Construction (EPC) Scope Of Work for Olefin Complex PT. Trans Pacific Petrochemical Indotama (TPPI) (10/12).
Corporate Secretary of PT KPI, Ifki Sukarya explained the tender process for the procurement of Basic Engineering Design Package (BEDP), Front End Engineering Design (FEED) And Engineering, Procurement & Construction (EPC) Scope Of Work For Olefin Complex PT. The Trans Pacific Petrochemical Indotama Development Project – Tuban is implemented using a Design Build Competition (“DBC”) strategy according to the provisions of the Guidelines for the Procurement of Integrated Construction Works for Refinery Processing and/or Petrochemical Projects No. A05-001/V10200/2020 of February 18, 2020, and procurement documents that have been submitted at the tender stage.
“The duration of the DBC Contract execution is 270 Calendar Days. According to DBC's strategy, after the two Contractors have completed the work of the DBC contract scope, they will continue to compete for the winner of the EPC scope," explained Ifki further.
For project implementers, PT KPI cooperates with 2 parties, that are for Operational Cooperation with HRES (Hyundai Engineering Co., Ltd., PT Rekayasa Industri, PT Enviromate Technology International And Saipem SpA) and with the TTTS Consortium (Technip Italy S.p.A, PT Technip Indonesia, PT Tripatra Engineers And Constructors, Samsung Engineering Co., Ltd).
The TPPI Tuban's Olefin Complex Development Project is a project within PT Kilang Pertamina Internasional which will be built and consists of Naphtha Cracker, LDPE, HDPE/LLDPE, and PP/HIPP Units.
TPPI is currently in the process of constructing an Olefin and Aromatic production facility is known as the Olefin Complex Development Project (OCDP) in the TPPI refinery area, Tuban Regency, East Java. At TPPI two development projects are currently being carried out by Pertamina. First, the Revamping Aromatic project which will increase the production of petrochemicals in the form of Paraxylene from 600 thousand tons to 780 thousand tons per year which are targeted to be completed in 2022.
Second, the New Olefin Project includes the construction of a Naphtha Cracker, including downstream units with Polyethylene (PE) products of 1 million tons per year and Polypropylene (PP) 600 thousand tons per year which are targeted for completion in 2024.
"Through Subholding Refinery & Petrochemical, we openly invite world-class companies with experience in Olefin and Petrochemical development to become strategic partners in realizing Olefin and Aromatic Production facilities in Indonesia" stated Ifki.**