REPUBLIKA.CO.ID, JAKARTA -- Indonesian state-owned oil and gas enterprise Pertamina will commence operating the first phase of the Residual Fluid Catalytic Cracking (RFCC) refinery by July, to reduce dependence on imported fuel.

"The refinery can produce gasoline equivalent to RON (Research Octane Number) 92, locally known as Pertamax," Director of Processes Rachmad Hardadi said here on Wednesday (6/5).

He added that the refinery in Cilacap, Central Java, will be in operation by August 2015 at the latest.

According to Hardadi, besides increasing the production capacity of RON 92, RFCC production can also reduce the high import of RON oil and gas.

"RFCC can also raise the national production of liquefied petroleum gas (LPG), as well as that of oil and gas, and increase the refinery's margin," he affirmed.

Currently, the RFCC refinery's Pertamax capacity is 62 thousand barrels per day, LPG capacity is ten thousand barrels, and propylene capacity is four to five thousand barrels.

With this output, the total capacity of Pertamina's refinery in Cilacap will increase from 350 thousand per day to 412 thousand per day.

The groundbreaking of the construction of the RFCC refinery was conducted in November 2011 by former president Susilo Bambang Yudhoyono, with an investment value of US$1.4 billion.

To reduce oil and gas imports, Pertamina will expedite the construction of three new refineries of the New Grass Root Refinery (NGRR).

"NGRR can begin operations in 2019, three years earlier than the initial plan of commencing in 2022," Hardadi noted, adding that the construction of one NGRR needs at least US$10 billion.

One of the refineries will be built in Bontang, East Kalimantan, on a 600-hectare plot of land belonging to Pertamina's subsidiary, Badan NGL.

With these three new refineries, the total oil and gas production of Pertamina will be 1.3 million barrels per day.

Currently, the oil and gas company produces about 850 thousand per day.

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