Pertamina Builds Lube Plants

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Indonesias state energy company, Pertamina, announced last week it will build a lubricant blending plant and a grease plant in Jakarta. The blending plant will be the companys third and largest such facility.

When these projects are completed, PT Pertamina will become one of the lubricant producers with the highest blending capacity in Southeast Asia, Marketing and Commercial Director Hanung Budya told Lube Report Asia.

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The projects, located in the capitals Tanjung Priok port area, will cost a combined 1.3 trillion rupees (U.S. $114 million). The 800 billion rupee blending plant will have capacity to make 350,000 tons per year of lubricating oils when completed in December. Together with two other existing plants they will increase the companys total oil blending capacity to more than 600,000 t/y.

The other two plants are in Cilaca, Central Java, with a capacity of 130,000 t/y and in Gresik, in Surabaya, East Java, with a capacity of 135,000 t/y.

Construction of the 500 billion rupees grease plant will begin in June 2015. When completed, it will increase the companys capacity for making grease from 3,000 t/y to more than 8,000 t/y.

Pertamina officials also confirmed that the company is in the process of acquiring production facilities in Thailand as a production base for their markets in Southeast Asia. The company is also developing a strategy to market lubes in China by cooperating with oil companies for the expansion of their lubricant business there.