Petrochemical Complex Rosneft and Pertamina Collaborate for Development of TGRR Project
Both the companies have entered into a joint venture to carry out the Indonesian project. On completion, the refining capacity is expected to be 15 mmpta (300 kbpd).
Moscow/Russia – Rosneft and Indonesian state-owned oil and gas company Pertamina completed the establishment of the joint venture (JV) for the development of Tuban grass root refinery and petrochemical complex (TGRR) in Tuban in the East Java province of Indonesia.
The Joint Venture Company PT Pertamina Rosneft Pengolahan dan Petrokimia (Indonesia) was established in accordance with the Joint Venture Agreement signed in October 2016. The agreement envisages the following participant shares in the joint venture: Rosneft – 45 %, Pertamina – 55 % and sets out the JV’s governance principles.
Rosneft and Pertamina conducted the project feasibility study and moved to basic engineering and design of TGRR. The attractive market conditions of Indonesia and the expected consumption growth enabled the working group of Rosneft and Pertamina to develop a competitive concept of the new refinery and petrochemical complex. The parties confirmed possibility of arranging project financing after bankability study performed with the international financial institutions.
The planned refining capacity is 15 mmpta (300 kbpd) and the targeted capacity of the petrochemical complex is over 1 mmtpa of ethylene and 1.3 mmtpa of aromatics. The feedstock for TGRR will be medium and heavy sulfur crude oil grades. The crude oil terminal will be able to accommodate VLCCs (Very Large Crude Carriers) of up to 300 thousand tonnes.