| Project Detail |
PROJECT TYPE
Refinery expansion
LOCATION
East Kalimantan, Indonesia
EXPECTED COMPLETION
Phase one: 2019, Phase two: 2021
ESTIMATED INVESTMENT
IDR57.8bn ($4bn)
DEVELOPER
PT Pertamina
CONTRACTORS
SK Engineering & Construction, Hyundai Engineering, PT Rekayasa Industri, PT PP (Persero), WorleyParsons
Balikpapan refinery, located on Borneo Island in East Kalimantan, Indonesia, is being expanded by its owner PT Pertamina (Persero) in order to increase its capacity by adding new processing units.
The expansion project is part of the IDR246.2trn ($17bn) Refinery Development Master Plan (RDMP) programme launched by the Indonesian government to revamp and upgrade five refineries in the country.
The facilities to be updated are the Cilacap refinery in Central Java, the Balongan refinery in West Java, the Dumai refinery in Riau, the Balikpapan refinery in East Kalimantan and the Plaju refinery in South Sumatra.
The RDMP will improve the country’s energy security, as well as increase the production capacity of the refineries by 150%. The Balikpapan expansion will see production rise from 260,000 barrels per day (bpd) to 360,000bpd and enable the refinery to produce high-quality fuels of Euro V standard.
The project will be undertaken in two phases with a total estimated investment of IDR57.8bn ($4bn). The first phase is expected to be completed by the end of 2019, while the second phase is targeted for completion in 2021.
Balikpapan refinery expansion details
The Balikpapan refinery expansion project will add a residual fluid catalytic cracker (RFCC) unit with design capacity of 90,000 barrels per stream per day (bpsd), a liquefied petroleum gas (LPG) sulphur removal unit, a propylene recovery unit and a 80,000bpsd middle distillate hydrotreater.
There will also be units for naphtha hydrotreating, continuous catalytic reforming, alkylation, kerosene hydrotreating, diesel hydrotreating and hydrogen production, as well as a steam methane reformer (SMR) with a capacity of 120,000Nm³/h.
Other units planned to be added to the refinery will be an isomerisation unit, saturated gas concentration unit (GCU), amine treater and regenerator, as well as caustic and LPG treaters. The new units will be built on 75ha of land.
The gasoline produced by the RFCC unit will be processed in a selective hydrogenation unit (SHU) with a capacity of 48,000bpsd, using Axen’s Prime-G+TM technology to produce ultra-clean gasoline.
The existing vacuum distillation unit (VDU), crude distillation unit (CDU), hydrocracker unit (HCU) and LPG recovery units will also be upgraded as part of the project. The production of Euro V gasoline, diesel and LPG will increase respectively by 100,000bpd, 30,000bpd and 930t per day.
Infrastructure facilities
Pertamina will upgrade the Lawe-Lawe terminal to add the facilities and infrastructure required for the units. A single point mooring system and a pipeline end manifold capable of handling crude carriers with 320,000DWT will be developed.
In addition, a sulphur jetty, a jetty extension area, mooring dolphins and shipping navigation assistance facilities will be developed.
A 20in diameter onshore pipeline from the Lawe-Lawe terminal to the Panajam terminal and a 52in diameter offshore pipeline from Panajam terminal to Balikpapan refinery will also be constructed.
Other infrastructure facilities planned to be added to the refinery are a water treatment plant, steam and power generation plant, as well as an instrument air and nitrogen unit and tankage system, consisting of two new crude storage units with a capacity of 100 million barrels.
Site development work covering an area of 97,936m², construction of 11,351m² of workshops and a warehouse covering 24,240m² are also part of the project.
Contractors involved
Four companies including SK Engineering & Construction, Hyundai Engineering, PT Rekayasa Industri and PT PP (Persero) are jointly undertaking the project.
WorleyParsons was contracted to provide project management consultancy services for the engineering, procurement and construction (EPC) packages.
Pertamina licensed Axens Technologies and Air Liquide Engineering & Construction’s process technologies for the new units.
WIKA was awarded the contract for site development and construction of the jetty, while Bechtel International carried out the front-end engineering design studies for the Balikpapan refinery expansion. |
