Indonesia to cut imports as TPPI comes online

Fuel imports will be reduced by up to 100,000 barrels per day

Indonesia has suffered from lack of investment in its refining sector since the early 90s.
Indonesia has suffered from lack of investment in its refining sector since the early 90s.

Indonesia said on Monday its Trans Pacific Petrochemicals Indotama (TPPI) refinery will reduce the country's fuel imports once it restarts operations on the 8th of Ocotber, Reuters reports.

The Southeast Asian state currently imports between 700,000-800,000 barrels per day (bpd) but the figure will be reduced significantly, by 80,000-100,000 bpd, with the refinery coming back online.

"We'll reduce fuel imports by around one-seventh or 15 percent," the chief executive officer of Pertamina, the refinery operator, Dwi Soetjipto told reporters.

He added that the refinery would reduce Indonesia's spending on fuel imports by around $10mn per day, from a total of $70-$80mn currently.

Initial output from the plant is expected to be around 20,000 barrels per day (bpd) of either petrochemicals or fuel, ramping up to 50,000-55,000 bpd, Widanda Pusponegoro, spokeswoman for the state energy company, Pertamina, told Reuters.in September.

"Our focus for now is to finalise the financial and all the legal requirements," she said. "In terms of operations we don't have any obstacles," the spokeswoman said, declining to give more informaiton on when the production will increase.

The TPPI refinery was under a graft investigation this year in relation to the sale of condensates.

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