News - 10 October 2018

Pertamina to sign two deals at IMF-WB Annual Meeting

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State energy holding company Pertamina is set to ink at least two infrastructure financing agreements on Thursday on the sidelines of the 2018 International Monetary Fund - World Bank (IMF-WB) Annual Meetings in Nusa Dua, Bali.

With Taiwanese energy firm CPC Corporation, Pertamina will sign a deal on a naptha cracking plant, while with Italian oil and gas giant ENI S.p.A, the company will sign an agreement on an environmentally friendly refinery, said State-owned Enterprises (SOEs) Minister Rini Soemarno in Bali on Tuesday.

The total investment value of the naptha cracking plant project will amount to US$ 5 billion, she said, adding that the goal of the agreement with ENI S.p.A was to absorb the technology to produce 100 percent biodiesel ( B100 ).

Currently, Indonesia can only produce 20 percent blended biodiesel ( B20 ).

“Since 2015, the company [ENI] has produced B100 using as a raw material palm oil from Indonesia. The collaboration is to alter our refineries [to be able to produce B100]. We expect we can reduce crude oil imports,” she said.

Meanwhile, Pertamina president director Nicke Widyawati explained that the decision to pick ENI S.p.A as a partner for the green refinery project was based on the latter’s vast experience in altering conventional refineries to become biorefineries.

“Similar [technology] is likely to be implemented in our refineries in Dumai and Plaju, the locations of large palm oil plantations,” Nicke said.

The two deals are part of 21 SOE projects worth Rp 200 trillion ($13.1 billion) in direct investment. (bbn)

Source: The Jakarta Post