Pertamina lets contract for Balikpapan refinery upgrade

State-owned PT Pertamina has let a contract to a division of Siemens AG to supply a range of compression and power generation equipment to be installed as part of Pertamina’s previously announced $3.9-billion Balikpapan Refining Development Master Plan (RDMP) project to upgrade and modernize its 260,000-b/sd refinery on Borneo Island in Balikpapan, East Kalimantan, Indonesia (OGJ Online, Dec. 13, 2018).

Siemens Gas and Power will deliver 17 of its proprietary reciprocating compressors, including eight HHE-VL compressors, two HHE-FB compressors, four HHE-VG compressors, and three HSE compressors, Siemens said.

The HHE reciprocating compressors—which feature a heavy-duty, cast iron frame to reduce vibrations transmitted to associated piping, as well as provide maximum stability using internally ribbed walls and integral cross-member bearing saddle supports located between each crank throw—will be used in various refinery processing units and help ensure stabilized plant operation, according to the service provider.

The scope of delivery also will include a single-stage hot gas expander—which will recover waste heat (i.e., flue gas) from the residual fluid catalytic cracker (RFCC) reactor to produce about 20 Mw of free power to drive the plant’s central air blower—along with a single steam turbine. Arrangement of the hot gas expander and steam turbine will reduce the site’s overall steam consumption, resulting in major operational cost savings for Pertamina, Siemens said.

As part of the order, Siemens Gas and Power also will supply four of its proprietary SGT-800 industrial gas turbines and five SST-600 steam turbines for the Balikpapan refinery’s associated power plant.

While it did not disclose a value of the contract, Siemens did confirm installation and commissioning of the equipment included in its scope of delivery under the order are scheduled for 2022.

Alongside expanding the refinery’s crude processing capacity by 100,000 b/sd to 360,000 b/sd, the Balikpapan RDMP proposed overhaul also will include construction of units that will equip the refinery to produce fuels meeting Euro 5-quality standards, including a new 90,000-b/sd RFCC; 80,000-b/sd middle distillate hydrotreater; LPG sulfur removal unit; and propylene recovery unit, Siemens said.

The Balikpapan RDMP project comes as part of the Pertamina’s broader 10-year, $30-billion plan to revitalize and expand operational capability of its Indonesian refineries by doubling existing overall processing capacity to 2 million b/d by 2026 to meet the country’s growing demand for cleaner petroleum-derived products and reduce its dependence on foreign imports (OGJ Online, Sept. 17, 2019).

Earlier this year, Pertamina entered a principle agreement with Mubadala Investment Co. of the United Arab Emirates to further evaluate investment cooperation opportunities in the processing sector, including a potential joint investment to accelerate development of the $3.9-billion Balikpapan RDMP project, the first phase of which was previously scheduled for completion in 2021 (OGJ Online, Jan. 24, 2020).