KUALA LUMPUR: PETRONAS Lubricants International (PLI) has signed a jount study agreement (JSA) with PT Kilang Pertamina Internasional (PT KPI) to explore the possibility of a developing a new greenfield lube base oil plant in Refinery Unit IV Cilacap, Central Java.
In a statement, PETRONAS said the two companies will 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 Southeast Asia."This JSA is part of our larger strategic efforts to complement and grow our existing portfolio of high-grade lube base oils.
"Through this collaboration, we will be leveraging each other’s strengths, capabilities and existing network distributions, reaching out to our customers better and faster,” said PETRONAS Lubricants International managing director and group CEO Hezlinn Idris. According to the statement, the refinery is capable of processing raw materials from existing RU IV Cilacap, producing up to 800 tonnes a day of high-grade lube base oils as well as other supplementary products such as diesel fuel, naphtha and LPG.
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