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Pertamina and Rosneft Push Forward on $24 Billion Grassroots Refinery

10/19/2022

Pertamina of Indonesia is moving forward on a significant grassroots refinery in Indonesia’s East Java Province and will be partnering with Russian state energy company Rosneft, even as geopolitical pressures continue to surround Russia. This progress is likely due to the neutral position that Indonesia has taken regarding the war in the Ukraine.

Pertamina is reportedly planning to spend as much as $50 billion USD in 2023 for refinery construction and expansion projects, with nearly half of that earmarked for this upcoming grassroots refinery, referred to previously as the $24 billion dollar GRR project in Tuban. Pertamina refining subsidiary Kilang Pertamina International President Taufik Aditiyawarman recently stated that “Once completed, we’re hoping the refinery will increase our crude refining capacity by 300,000 barrels a day.” Mr. Adityawarman added that “"The GRR Tuban development is currently still awaiting the FID [final investment decision], which [we] hope can be done in early 2023." The currently anticipated completion date is expected in 2027. This 300,000 bpd newbuild refinery will refine vehicle fuels and have a petrochemical component for potential production of styrene, polypropylene, and polyethylene.