TEC Receives an Oil Refinery Modernization Contract from Indonesia's Pertamina

abarrelfullabarrelfull wrote on 16 Sep 2014 11:13

Toyo Engineering Corporation (Tokyo, Japan, TEC, President Toshihiko Hirose), together with PT Rekayasa Industri (head office Jakarta), one of Indonesia's major engineering companies, received an oil refinery modernization contract from the Indonesian national oil company Pertamina (head office Jakarta) as part of the national environmental improvement program "Blue Sky Project". International bids and negotiations had been proceeding for some time, and recently an agreement was reached and the contract formally signed.

This project involves the modernization of the Balongan oil refinery (125,000 barrels/day (BPSD) crude oil throughput) located in the suburbs of Cirebon in west Java. The facility produces environmentally-friendly unleaded gasoline, using a process by UOP LLC (head office Delaware, U.S.A.). Items to be constructed include a naphtha hydrotreater (52,000 BPSD), a PENEX isomerization plant (23,000 BPSD) and a CCR reformer (29,000 BPSD), along with related offsite facilities such storage tanks for raw materials and the refined product. The scope of the TEC and Rekayasa consortium includes design, supply of the equipment and materials, construction, and commissioning supervision. The contract is worth about 18 billion yen (US$ 150 million) and the plant is scheduled to be completed in 2005.

In Indonesia, the daily use of leaded gasoline has caused serious pollution problems, and although the national environmental improvement program dubbed "Blue Sky Program" was expected to show results before now, realization was prevented until recently by financial constraints caused by the economic crises plaguing Southeast Asia. Realization of this environmental project was finally attained last year through part of the IMF financial recovery program, with Mitsui Corporation selected by bid as the leader of a finance arrangement.

TEC is currently engaged in four projects in Indonesia, including fertilizer, natural gas processing, and crude oil processing, and has made numerous achievements in over 30 previous projects in that country, which include fertilizer, petrochemicals, gas and power generation. TEC's award of this contract was surely a result of its competitive pricing, made possible by its substantial overseas collaborative network (transnational structure), as well as its accomplishments and technical capabilities in unleaded gasoline production plant projects, along with its reputation for reliability in timely delivery and quality cultivated through the executions of extensive past and current projects.

This project is the first contract received from Pertamina, and in addition to handling other projects related to the Blue Sky Project, TEC endeavors to vigorously grapple with operational activities in Indonesia from now on.

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