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German engineering company Siemens has been chosen to supply compression and power generation equipment for the Balikpapan refinery in Indonesia.

Balikpapan refinery is located on Borneo Island in East Kalimantan, Indonesia. It is owned and operated by PT Pertamina (Persero).

Siemens noted that the equipment will be installed as part of Pertamina’s Refinery Development Master Plan (RDMP), which involves the construction of a residual fluid catalytic cracker (RFCC) unit with a design capacity of 90,000 barrels per stream per day (bpsd).

The master plan of the facility also involves the construction of a liquefied petroleum gas (LPG) sulfur removal unit, a propylene recovery unit, as well as an 80,000bpsd middle distillate hydrotreater.

Siemens Energy Oil & Gas Division executive vice-president Matthew Chinn said: “Siemens Gas and Power is proud to partner with Pertamina on this project.

“The strong performance of our existing fleet of compressors across the region and strong in-country service capabilities played a key role in this strategic win.

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“These factors, coupled with performance, efficiency, and reliability of the SGT-800 gas turbines, will enable the cost-effective expansion of the Balikpapan refinery and contribute to the success of Pertamina’s RDMP, which will play an important role in improving Indonesia’s energy security.”

The expansion project will see the output increase from 240,000 barrels per day (bpd) to 360,000bpd at the Balikpapan refinery. It will also enable the refinery to produce Euro V standard fuels.

Siemens Gas and Power will supply 17 HHE reciprocating compressors, which will be manufactured in the company’s Naroda Gujarat plant in India.

According to Siemens, equipment installation and commissioning is scheduled for 2022.

In February this year, Siemens secured a contract to supply three boil-off compressor (BOG) packages for Venture Global’s Calcasieu Pass LNG Project in the US.