Pertamina Fulfilling Commitment to Produce High-Quality and Environmentally Friendly Refinery Products

Jakarta, August 17, 2023 - PT Kilang Pertamina Internasional (KPI), a Pertamina Subholding for refining and petrochemical business, is committed to producing high-quality refined products that are more environmentally friendly. The Cilacap Refinery, with the Cilacap Blue Sky Project (PLBC), and the Balongan Refinery with Balongan Blue Sky Refinery Project (KLBB), supply quality fuel to Jakarta and surrounding areas.

The Cilacap Refinery, through the completed Cilacap Blue Sky Project (PLBC) in 2019, produces gasoline with EURO IV-equivalent sulfur content, compared to the previous EURO II-equivalent sulfur content. With EURO IV-equivalent quality, the sulfur content in some of the Cilacap Refinery's fuel production is below 50 ppm, reduced from the previous 150 – 300 ppm. It results in a 0.11-gram reduction in SOx emissions per liter, down from 0.68 grams, marking an 83% decrease.

The products produced at the Cilacap Refinery include Solar, Pertamax, Pertalite, Pertamina Turbo, Pertamina Dex, petrochemical products, and lube bases. The fuel and LPG products are to meet the demand for fuel in the Jakarta, West Java, Central Java, and Yogyakarta regions. The current processing capacity of the Cilacap Refinery is the largest in Indonesia, at 348 thousand barrels per day (KPBD).

CEO of KPI, Taufik Aditiyawarman, explained that the Cilacap Refinery completed Phase I of the Green Refinery project in February 2022. With the completion of Phase I, the Cilacap Refinery can produce environmentally friendly products, including Green Diesel with EURO V-equivalent sulfur content, with a production capacity of 2500 barrels per day (BPD). The refinery has also received the International Sustainability Carbon Certification (ISCC) certificate. Furthermore, the Cilacap Refinery from the same unit has successfully produced Sustainable Aviation Fuel (SAF). "The inaugural flight test using plant-based fuel, a blend of 2.4% Bioaviation Turbine Fuel known as SAF 2.4J, was conducted from Bandung to Jakarta using a CN235 aircraft on October 6, 2021. SAF produces lower emissions, specifically 0.2948 kg CO2 Eq per liter, compared to Fossil Avtur's 0.2995 kg CO2 Eq per liter," Taufik explained.

Taufik further elaborated on Pertamina's other refineries. The Balongan Refinery, located in Indramayu, West Java, has the highest Nelson Complexity Index (NCI) among all other refineries. NCI is an index of a refinery's complexity, where a higher value indicates a refinery's ability to produce more quality products with more efficient production processes. Currently, the NCI of the Pertamina Balongan Refinery is 11.9, the highest among all Pertamina refineries. Following its development, the Balongan Refinery's capacity has increased to 150 thousand barrels per day (KBPD), up from the previous 125 KBPD.

"The Balongan Refinery currently produces various products, including Pertalite, Pertamax, Pertamax Turbo, Solar, Pertamina Dex, LPG, Propylene, Avtur, and specialty chemical products such as Gas Oil for Antifoam (GO Foam)," Taufik stated.

In 2005, the Balongan Refinery established the Balongan Blue Sky Refinery (KLBB) unit to comply with environmentally friendly, lead-free fuel regulations. KLBB processes Low Octane Mogas Component (LOMC) from other refineries (which used to require the addition of lead/tetraethyl lead (TEL) to meet premium product specifications) into High Octane Mogas Component (HOMC) sent to other refineries as a TEL replacement component for gasoline.

Taufik revealed that the Balongan Refinery could produce Pertamina Dex products with a maximum sulfur content of 10 ppm, equivalent to EURO V standards. The resulting reduction in SO4 emissions due to improved sulfur quality is 0.0255 grams SOx Eq per liter, down from the previous 1.275 grams SOx Eq per liter, representing a 98% decrease.

In addition to these two refineries, Taufik also explained that the Balikpapan RDMP project, currently in progress, is designed to increase processing capacity from the previous 260 KBPD to 360 KBPD while upgrading the quality from Euro II to equivalent EURO V standards for improved environmental friendliness.

KPI continues to support the energy transition by producing high-quality and environmentally friendly refined products, including plant-based fuels. Additionally, KPI is preparing to engage in the petrochemical business as a refined product.

VP of Corporate Communication at Pertamina, Fadjar Djoko Santoso, added that in the spirit of Indonesia's 78th Independence Day, Pertamina is committed to presenting innovations and refinery breakthroughs as gifts to the nation. These achievements involve positive accomplishments and refinery optimization to create increasingly environmentally friendly refinery products aligned to achieve Net Zero Emissions (NZE).

"The goal of achieving NZE cannot be accomplished by only a portion of Pertamina's business lines; it requires the participation of all business lines, from upstream to downstream," expressed Fadjar.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**

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