Tosupport the Government’s plans, the State-owned energy producer PT Pertamina willbuild two oil refineries in Bontang in East Kalimantan and Tuban in East Java aswell as develop refinery capacity at existing plants in Dumai, Balikpapan,Balongan, and Cilacap.
MohammadHidayat from the Ministry of Energy and Mineral Resources said that based on afuel supply and demand prognosis for 2020-2026, production has been estimatedat 87.4 million kiloliters (KL) while demand is growing 3.16 percent annually andwill reach 85.1 million KL.
Theprognosis is based on the availability of existing data and refinery projectsbeing built and completed in what year, and how much production can meetdomestic fuel needs, he said last week.
He wenton to say that fuel production from domestic refineries will remain stagnant in2020-2021 while demand continues to grow. There will be additional fuelproduction from Balongan in 2022 and fuel imports are estimated at 25.9 millionKL and domestic fuel production at 47.8 million KL, while fuel demand is estimatedat 74.7 million KL.
Thecompletion of the Balikpapan project in 2023 is expected to contribute toadditional fuel production of 57.5 million KL and help imports fall slightly,to 25 million KL, he added. Fuel demand is projected at 77.3 million.
Fueldemand in 2024 stands at 80 million KL, fuel production at 57.5 million KL, andimports at 25.9 million KL.
Fuelimports are forecast to decline sharply in 2025 when demand expands to 82.5million KL and fuel production reaches 68.1 million KL and imports 13.4 millionKL. The decline in imports is due to additional production from the Bontangrefinery.
Additionalproduction is expected from Cilacap and Tuban in 2026./.