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PT Kaltim to complete its refinery by 2020 in Indonesia

PT Kilang Kaltim Continental (KKC), an Indonesian subsidiary of Continental Energy Corp. (CEC), Vancouver, BC, has let a contract to Lone Star Technical Solutions Group (LSTS), League City, Tex., to provide front-end engineering design and other services for a proposed 24,000-b/d modular refinery to be built in two phases at the KIPI Maloy port and industrial park in a special economic zone of the Kutai Timur Regency in East Kalimantan Province, Indonesia.

Phase 1 of the project is to include construction of a simple 6,000-b/d refinery, an associated 10-Mw electrical power generation plant designed to use heavy fuel oil produced by the refinery, and a tank farm to store crude feedstock as well as refined product.

Targeted for startup in December, the refinery’s $50-million Phase 1 will produce diesel, B30 biodiesel, LPG, naphtha, marine fuel oil, and residual fuel oil for direct sale to industry, distributors, and consumers within the East Kalimantan region.

As part of the Phase-1 development, CEC said it already has arranged an unidentified global oil trader to supply imported crude to the refinery until it can purchase crude feedstock under long-term contracts from local oil producers within East Kalimantan Province.

Scheduled for commissioning by yearend 2020, Phase 2 of the refinery will expand capacity by 18,000 b/d to 24,000 b/d as well as add complex equipment to enable production of gasoline and jet fuel.