Pertamina to Implement B100 through Green Refinery Project
Energy state-owned enterprise PT Pertamina (Persero) mentioned its preparedness to produce 100 percent vagetable diesel fuel or so-called B100, through green refinary project in two factories possessed. Recently, Pertamina is preparing its refinary in Dumai, Riau province, for B100 development.
According to President Director of Pertamina, Nicke Widyawati, the use of existing refinary is to optimize assets owned. Moreover, investment value for using existing refinaries will not be as costly as creating new refinary that valued about US$ 1.5 billion or equivaent to 22.05 trillion Rupiah.
“Investment for Dumai and Plaju refinaries development only valued 40 percent compared to new refinary,” said Widyawati, in Pertamina Energy Forum (PEF) 2018 press conference in Raffles Hotel, Jakarta, Wednesday, November 28th, 2018.
By the conversion, two Pertamina’s refinaries will produce biodiesel and biofuel, different than the previous production for diesel and fuel.
By this refinary conversion, Pertamina is expected to be an environmental-friendly fuel production leader in Indonesia, stated by Coordinating Minister for Economic Darmin Nasution in PEF 2018 opening. “We expected Pertamina to be a leader in developing B20,” he said.
Pertamina had signed an agreement with Italian oil and gas company ENI S.p.A. to cooperate in oil and gas downstream business. The agreement covers potency to develop green refinary, also trade opportunity for oil and gas business and other products. The agreement inked by President Director of Pertamina Nicke Widyawati and ENI’s Refining dan Marketing Officer Chief Giuseppe Ricci, as watched by State-Own Enterprise Minister Rini Soemarno, on September 21st, in Porto Marghera, Venetia.
The green refinary collaboration is in accordance with Pertamina’s commitment to supply B20, mix of 20 percent vegetable oil and 80 percent petroleum diesel, as mandated by government. After B20, government is also optimistic towards B100 implementation.
Recently, Indonesia oil consumption is around 1.6 million barrels per day while domestic production only reached 800,000 barrels per day. So Indonesia must import to cover the shortages. If there is no big investment for new exploration aims to add reserves, Indonesia oil production can be decreasing.
Responded to that, State-Owned Enterprise Ministry’s Deputy of Mining Business, Strategic Indusry, and Media Fajar hari Sampurno said Indonesia badly needs other sources of energy, as Indonesia has a huge potency to develop alternative energy.
“In developing renewable energy, wind energy, solar energy, Pertamina is expected to not do that alone. Domestic or foreign company, state-owned or private company can do it together,” he said.