TPPI Completes OSBL Aromatic Revamping Project
Tuban, December 20, 2021 – PT Trans Pacific Petrochemical Indotama (TPPI) marked the completion of the Outside Battery Limit (OSBL) for the Aromatic Revamping Project by holding an inauguration ceremony on December 20, 2021, at the Tuban TPPI Refinery. President Director of PT Pertamina (Persero), Nicke Widyawati, carried out the inauguration and was attended by other stakeholders. It includes the Directors and Commissioners of PT Pertamina (Persero), the Directors and Commissioners of PT Pertamina International Refinery, the Directors of PT Tuban Petrochemical Industries, the Regent of Tuban, and all the Forkopimda of Tuban Regency.
TPPI, with full support from the Main Shareholders PT Pertamina (Persero) and PT Tuban Petrochemical Industries, is fully committed to managing the Aromatic refinery project in Indonesia to reduce imports of petrochemical derivative products. One of them is by launching the TPPI Aromatic Revamping Project that can increase the production capacity of Paraxylene from 600 thousand to 780 thousand tons per year. It also increases the production capacity of Benzene from 440 thousand to 500 thousand tons per year.
The TPPI Aromatic Revamping Project OSBL inauguration will be a historic day for TPPI. This project is TPPI's first project since it started operating in 2006 or 15 years ago.
"It is clear evidence that TPPI can rise and organize the future to become a company that grows and develops," said Erwin Widiarta, Acting President Director of TPPI.
As one of the largest SOEs in the country, Pertamina has a role to play in boosting the Indonesian economy, especially during this pandemic. The economy is expected to move and recover soon, through investments including the National Strategic Project and Pertamina's strategic project.
"Pertamina continues to increase refinery capacity to optimize fuel products and improve the quality of fuel and naphtha. To anticipate the decline in demand for fuel, Pertamina has integrated a petrochemical refinery, considering that currently these products are still being imported," said Nicke Widyawati in her speech.
President Director of PT Tuban Petrochemical Industries, Sukriyanto, explained "Revamping the TPPI Refinery is one of the important milestones of a series of steps agreed in the Agreement between the Minister of Finance of the Republic of Indonesia and PT Pertamina (Persero) in August 2018. It is in the context of developing the national petrochemical industry. This step begins with the takeover of TubanPetro by the Minister of Finance and Pertamina, increasing share ownership in TPPI and at the same time providing additional capital to increase refinery capacity and the initiation of several development projects in other TubanPetro subsidiaries."
The completion of the OSBL supports the Aromatic Revamping project and increases the operational flexibility of the TPPI Refinery. The completion of this OSBL includes the construction of 5 units of tanks, complete with piping systems, electricity, instrumentation, and safety, with a project value of Rp. 379.75 billion.
The OSBL construction that has been completed and commissioned consists of three 40,000 kl tanks, one 38,000 kl tank, and one 15,200 kl tank. All have started to be used in the operation of the TPPI Refinery since December 18, 2021.
TPPI started construction of the OSBL in June 2020 and was completed on target within 18 months. The success factors for the completion of the OSBL project include Engineering Procurement and Construction (EPC) contract system, through a clear definition of the project Scope of Work (SOW) and the consistent application of Good Corporate Governance (GCG) principles.
Djoko Priyono, President Director of PT Refinery Pertamina Internasional, added, "PT Refinery Pertamina Internasional, as Subholding Refining & Petrochemical, is fully committed to developing the TPPI refinery, not only operational aspects but also business aspects going forward, through optimization and integration between TPPI refineries and Pertamina refineries,"
"The development of the TPPI Refinery is divided into two main parts, namely, the first is the TPPI Revamp Project to maximize Paraxylene production. The second is the TPPI Olefin Project, where we integrated the needs of this Olefin Refinery from the existing TPPI Refinery and also The existing Pertamina refineries so that they can improve the project's economy and also the TPPI refinery," he added.
With the implementation of different national strategic projects at the TPPI Tuban Refinery, TPPI's role as part of the Pertamina Group's national petrochemical industry development would be significant.
In addition to expressing her congratulations and pride, Nicke Widyawati, President Director of PT Pertamina (Persero), expressed her hope that enthusiasm and hard work will continue, "Hopefully, the enthusiasm, hard work, and commitment will not stop here. This achievement is the beginning of TPPI's journey with Pertamina to become a world-class global company. I remind all officers to prioritize HSSE aspects in carrying out their job duties, wherever and whenever. The pandemic is still around us. Please continue to follow the health protocols," she concluded.**