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PETRONAS Lubricants and PT Kilang Pertamina collaborate on a lube base oil plant
PETRONAS Lubricants International (PLI) and PT Kilang Pertamina International (PT KPI) recently signed a Joint Study Agreement (JSA) to explore the possibility of developing a new greenfield lubricant base oil plant in Indonesia.
This collaboration will see the two companies carry out a technical and feasibility study, which is expected to cater to the demand of the Indonesian market and growing regional markets, including China and Southeast Asia, with the investment decision expected to be concluded by 2025.
L-RAris Mulya Azof, Senior Vice President, Downstream, Power, Gas & NRE (Persero); Johan N.B Nababan, PT KPI’s Director of Business Planning and Development; Hezlinn Idris, PETRONAS Lubricants International’s Managing Director and Group CEO; and Ahmad Adly Alias, Vice President of Refining, Marketing & Trading, PETRONAS.
SOURCE | PETRONAS
PETRONAS Lubricants International’s Managing Director and Group CEO, Hezlinn Idris, said, “This JSA is part of our larger strategic efforts to complement and grow our existing high-grade lube base oils portfolio. Through this collaboration, we will leverage each other’s strengths, capabilities and existing network distributions, reaching out to our customers better and faster. We believe this JSA will provide both companies additional opportunities to explore the untapped markets and expand our regional presence as leaders in lubricant technology.”
Johan N.B. Nababan, PT Kilang Pertamina International’s Director of Business Planning and development, said, “We are proud to partner with PETRONAS Lubricants International, as we seek synergistic opportunities to expand our existing presence in the region further. There is much potential to push the boundaries of lubricant technology, and we are happy that this partnership will open the possibilities ahead of us.”
The refinery can process raw materials and produce up to 800 tonnes/day of lube base oils and other products such as diesel fuel.