Pertamina expects Balikpapan's CDU IV to resume later this month
Indonesian state energy company Pertamina expects its Balikpapan refinery's CDU IV to resume operations later this month, an official at its refinery subholding PT Kilang Pertamina Internasional (KPI) said.
The refinery was scheduled for a revamp and expansion from mid-February to mid-May to add about 100,000 bpd of crude processing capacity, but the CDU (crude distillation unit) IV was affected by a fire in late May.
The site's CDU V, which has 60,000 bpd capacity, was running normally. "The repairs are in progress, hopefully within this month the CDU IV of Balikpapan refinery will be able to resume operations," Hermansyah Nasroen, KPI's corporate secretary told Reuters.
Since the incident, Pertamina has ramped up its fuel purchases to secure supply while the repairs were carried out, sources said. Pertamina's trading unit sought around 3.2 MMbbls of 2,500 ppm sulfur gasoil and 1.6 MMbbls of jet fuel on a spot basis for July shipment from the Straits region, several trade sources said.
Earlier in June, Pertamina's trading arm was looking to buy up to 6 MMbbls of 2,500ppm sulfur gasoil for delivery in the same month.
The oil major also tried to buy term supplies of both jet fuel and 10 ppm sulfur gasoil for delivery between August and December delivery, Reuters tender records showed.
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