Indonesia orders study for South Sumatra refinery revamp

PT Pertamina of Indonesia has selected Axens to develop a bankable feasibility study for the modernization and capacity expansion of the state-owned oil company’s Plaju refinery in Palembang, South Sumatra.

As part of its role in conducting the study, Axens will develop all engineering documentation and economic analysis related to the potential modernization master plan for the refinery, according to Axens.

In undertaking the modernization project, Pertamina aims to improve both the gross refining margin and competitiveness at Plaju by increasing the plant’s flexibility to process sour crudes and boost production rates of Euro IV-standard gasoline and diesel to help satisfy India’s rapidly growing domestic demand for motor fuels, Axens said.

This latest feasibility study follows Pertamina’s previously announced plans to modernize five of its exiting Indonesian refineries to enable the plants to process growing imports of heavy, low-sulfur crude oil as Indonesia’s domestic crude production continues to decline (OGJ Online, Dec. 2, 2013; Oct. 7, 2013).