BPH Migas says Indonesia needs three more refineries

Saryono Hadiwidjoy, an official of Indonesia’s downstream oil and gas regulator BPH Migas, said that the nation needs at least three more oil refineries to boost its fuel reserves. He explained that the establishment of additional refineries would help the nation cut fuel subsidy expenditure because there would no longer be a need to import oil. According to BPH Migas, a refinery with a processing capacity of 250,000 barrels of crude oil per day would cost between US$6 billion and US$8 billion.
Pertamina, the state-owned oil and gas company, operates six refineries which are capable of processing 1.157 million barrels of crude oil per day into 704,000 barrels per day (bpd) of gasoline. Saryono said Pertamina currently imports gasoline to meet the local demand of 1.16 million bpd. (July 19, 2012)