Indonesia to build 300,000 bpd refinery

Refinery will reduce dependence on imported fuels.

State-owned oil and natural gas monopoly Pertamina will operate the government-funded refinery. The new refinery is expected to begin operations in 2021 and will could be located in either East Java or Sumatra.

The Ministry of Energy and Mineral Resources is conducting a feasibility study on the new refinery that is expected to be completed in 2014. Crude for the refinery could be sourced from Iraq.

Indonesia’s refining capacity currently stands at 1 million bpd, which is capable of meeting about two-thirds of its demand.