The refinery project is expected to receive full support from the Indonesian authorities, in terms of the necessary benefits and the procurement of the infrastructure
Image: Rosneft and Pertamina JV contracts Spanish Tecnicas Reunidas. Photo: Courtesy of Frauke Feind from Pixabay.
PT Pertamina Rosneft Pengolahan dan Petrokimia has signed a contract with Spanish Tecnicas Reunidas for the construction of a oil refinery and petrochemical complex in Tuban, East Java, Indonesia.
A joint venture between Rosneft with a 45% stake and Indonesian state oil and gas company Pertamina with a 55% stake, PT Pertamina Rosneft Pengolahan dan Petrokimia was established in 2016.
Under the contact, the Spanish Tecnicas Reunidas will provide the basic engineering design (BED) and carry out a front-end engineering design (FEED) project for the construction of Tuban grass root refinery and petrochemical complex (TGRR) in Indonesia.
Tuban plant will become one of the most advanced facilities in the world
The JV said that the conception of developing a refinery/petrochemical complex is based on the favourable market environment and the growth prospects in Indonesia.
The primary processing facility of the petrochemical complex is planned to have a design capacity of up to 15mmta, where more than 1mmta for ethylene and 1.3mmta for aromatic hydrocarbons.
The project is expected to receive full support from the Indonesian authorities, in terms of the necessary benefits and the procurement of the infrastructure.
The company said that the integrated refinery and petrochemical complex will be commissioned within the next five years. The plant is expected to strengthen its position in the Indonesian consumer market.
According to Rosneft, the petrochemical project is expected to lead to the creation of a large new petrochemical cluster in the region of the city of Tuban in the future.
The project marks an important element in the company’s strategy to strengthen its presence in the high-margin market for petroleum-based products in the Asia-Pacific Region.
Rosneft, in a statement, said: “The attractive market conditions of Indonesia and the expected consumption growth enabled the working group of Rosneft and Pertamina to develop a competitive concept of the new refinery and petrochemical complex.”