(Updates with processing capacity in second paragraph.)
Dec. 28 (Bloomberg) -- PT Pertamina, Indonesia’s state oil company, started construction of a $1.4 billion fuel processing unit at its Cilacap refinery in Central Java to reduce reliance on imports of petroleum and petrochemical products.
The resid fluid catalytic cracking unit will have a daily capacity of 62,000 barrels and will start operation in third quarter of 2014, Pertamina President Director Karen Agustiawan said today at a press briefing in Cilacap.
Indonesia, Southeast Asia’s biggest crude oil producer, is boosting investment in refineries to help reduce the nation’s dependence on imports of oil products. The country imports diesel, gasoline and jet fuel because its refining capacity lags behind consumption.
“We still need imports of 12 million kiloliters of low- octane gasoline and 3 million kiloliters of diesel oil annually,” Agustiawan said. “It tends to increase in line with growing consumption of fuel.”
The new unit, which will produce high-octane gasoline and liquefied petroleum gas, will increase Pertamina’s annual gasoline production by 1.9 million kilolitres, she said.
Pertamina, based in Jakarta, produces 40.6 million kilolitres of petroleum products including low-octane gasoline, diesel oil and kerosene from its six refineries every year, data released by Pertamina showed.
Cilacap, Pertamina’s largest oil refinery, has total daily capacity of 348,000 barrels now, according to data from Pertamina.
--With assistance from Yoga Rusmana in Jakarta. Editors: Greg Ahlstrand
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