Ergon has opened its first transformer oil technology center in Asia, establishing a new base for research and technical support in Merak, Indonesia. The company said in a press release that the center will help address rising energy demands in the region by supporting the performance and reliability of transformer systems.
Local media reported in early 2025 that there are 3,264 villages in Indonesia that have no access to electricity.
Naphthenic base stocks are preferred for transformer oil applications due to their superior low-temperature, compatibility and solvency properties. The region produces ample naphthenic oil with capacity of 48,200 barrels per day divided between China and Japan, compared with 49,490 bbl/d in the Americas and Europe’s 13,900 bbl/d.
Situated within the Dover Chemical terminal complex, the facility will focus on the development and testing of dielectric fluids used in power transformers.
Juan Acosta, Ergon’s vice president of sales for Asia, said the facility reflects ongoing efforts to provide dielectric fluids that meet international standards and adapt to the region’s shifting energy requirements.
Transformer oils, also known as dielectric fluids, are essential to grid stability by providing insulation and preventing overheating in electrical equipment. As electricity consumption rises across Asia, demand for durable infrastructure and efficient power systems continues to grow.
Ergon produces HyVolt dielectric fluids, which are formulated for use in power and distribution transformers, circuit breakers and switchgears.