KUALA LUMPUR: PETRONAS Lubricants International (PLI) and PT Kilang Pertamina Internasional have signed a joint study agreement to explore the possibility of developing a new greenfield lube base oil plant in Refinery Unit (RU) IV Cilacap, Central Java.
This strategic collaboration will see the two companies carry out a technical and detailed feasibility study, which is expected to cater to the demand of the Indonesian market as well as growing regional markets including China and South-East Asia, with the investment decision expected to be concluded by 2025.
The refinery is capable of processing raw materials from existing RU IV Cilacap, producing up to 800 tonne/ day of high-grade lube base oils as well as other supplementary products such as Diesel Fuel, Naphtha and liquified petroleum gas.
Base oils are mainly used to manufacture products including greases, motor oil and metal processing fluids. Its dynamic property and formulation make it a preferred choice for industrial applications such as compressors, hydraulic systems, gears and turbines.
