Tuban GRR Project Needs EPC Contractor

PT Pertamina has announced plans to invest up to US$50 billion in Indonesia's refinery projects next year. Around US$24 billion will go into a greenfield refinery with the support of Russian state energy company Rosneft in East Java. Sitting on an 840-hectare area in Tuban Regency, it will consist of 14 refining units for vehicle fuels and seven petrochemical facilities. The refinery is expected to process heavy and high-sulfur crude oil.

Global Construction Review reported PT Kilang Pertamina International (KPI) established a joint venture with Rosneft in 2016 to develop the project, but the engineering design carried out by Spanish contractor Tecnicas Reunidas was just completed in August this year due to the pandemic. The project's groundbreaking may be carried out in the third quarter of next year, while the construction work will expectedly be completed by 2027. Pertamina will hold a 55 percent stake, while Rosneft owns the remaining 45 percent. KPI president Taufik Adityawarman revealed that the project would require a contractor to work on the engineering, procurement, and construction (EPC). "Once completed, the refinery will hopefully increase our crude refining capacity by 300,000 barrels a day," he said.