Optimize Production from Other Refineries to Tackle Balongan Issue: Energy Minister

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 118.Pers/04/SJI/2021

Date: 3 April 2021

Optimize Production from Other Refineries to Tackle Balongan Issue: Energy Minister

Please optimize the production capacity of other refineries, for example the Cilacap Refinery, so that fuel supply to the public is stable, Minister of Energy and Mineral Resources (EMR) Arifin Tasrif has said when he and President Director of PT Pertamina (Persero) Nicke Widyawati visited the location of the Balongan refinery which caught fire.

"We've just surveyed the location of the tanks which started to catch fire at dawn of Monday, March 29. Praise be to God, the fire has been extinguished, and fire-fighting process is in completion. Offensive fire-fighting measures are still being carried out. In addition, cooling is carried out to oil stocks at the bottom so that the temperature can be lowered," Arifin said on Saturday (3/4).

To prevent any possibility of fuel supply shortages because of the incident, Minister Arifin has call on Pertamina to optimize the production capacity of other refineries owned by Pertamina.

"Because of this incident, the production capacity of other refineries will be optimized while taking into account safety standards. We hope that domestic needs can be met by Pertamina on its own," explained Arifin.

Arifin also expressed his appreciation that actions had been taken so that the fire could be handled quickly and did not cause further damage.

At the moment, Pertamina is making cooling and monitoring steps to T-301 tank area to ensure that there is no potential for a fire to break out again.

A blaze broke out at tank T-301G of Pertamina's Balongan refinery in the early hours of Monday, 29 March 2021. The blaze spread to 3 other tanks, so that a total of 4 tanks caught fire (T-301E, T-301F, T-301G, and T-301H). When the blaze broke out, tank T-301E contained 2,038 KL of gasoline, tank T-301G was filled with 23,290 KL of gasoline, while tanks T-301F and T-301H were empty. The cause of the fire is uncertain, and investigation process is being carried out by Pertamina and external parties.

"Investigation into the cause of the incident is still being carried out. There are preliminary data and information, but these cannot be used as direct justification. Further processes are needed because there is direct evidence, but there is also indirect evidence," Arifin added.

Regarding stock availability, PT Pertamina (Persero) guaranteed that there would be no shortages.

"There's no need to panic. Fuel supply is safe. Only the storage was burned, not the refinery, so the refinery has begun the start up and can operate normally. Balongan (refinery) supplies the Plumpang depot in Jakarta and the Cikampek depot. Until now, supply and distribution are safe," said Pertamina's VP Corporate Communication, Fauziah Usman.

The Balongan refinery, which is owned by state oil and gas company PT Pertamina (Persero), has a processing capacity of 125,000 bopd, and is the refinery with the highest complexity in Indonesia (11.9 Nelson Index). The refinery, which began operating in 1994, processes 14 types of domestic crude (87% of total input) and 3 types of imported crude (13% of total input). The Balongan refinery produces aviation fuel, oil fuels (gasoline, diesel), LPG, petrochemicals (propylene), among others.

Most (82%) of Balongan refinery products are distributed to the capital Jakarta, Banten, and West Java provinces. The vast refinery is located in Balongan, in Indramayu District of West Java province. (IY)

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