News Search

News Search

Search Period

  1.  / 
  2.  / 
  3.    
  4.  / 
  5.  / 
  6.    

Asian Viewpoints

Indonesia Pertamina gives up biorefinery construction with ENI

Pertamina, Indonesia's state-owned oil and gas company, announced at the end of January that it canceled a project to build biorefineries in Indonesia with Eni, Italy's major energy company. These two companies had reached an agreement about one year ago to carry out a green refinery construction project where some old refineries in Indonesia would be converted into biorefineries. In this project, Pertamina's 133,700 b/d Plaju refinery and 170,000 b/d Dumai refinery were to be converted into refineries based on crude palm oil (CPO). Indonesia is the largest producer of feedstock CPO in the world and the project matched the government's policy to focus on solving environmental problems and improvement of national finance by utilizing national resources.

 

However, Eni required international certification for the CPO in the project as a condition for the cooperation. Meanwhile, Pertamina showed disapproval of this. Eni requested RSPO (Roundtable on Sustainable Palm Oil), Europe's certification of sustainable palm oil production, which is different from ISPO (Indonesia Sustainable Palm Oil), Indonesia's own certification. The Indonesian government had established ISPO, its own certification, to prevent deforestation and to protect the environment. But the government refused to accept Europe's certification since production costs might increase.

Singapore : Energy Desk  Satoshi Hagimoto   +81-3-3552-2411Copyright © RIM Intelligence Co. ALL RIGHTS RESERVED.