OREANDA-NEWS. Indonesian petrochemical producer Trans Pacific Petrochemicals Indotama (TPPI) is scheduled to restart its 100,000 b/d condensate splitter in October with initial output of oil products targeted at around 20,000 b/d.

The restart follows a new third-party processing agreement struck between Indonesian state-owned oil firm Pertamina and TPPI. Pertamina will supply domestic condensate to the Tuban-based plant. The restart will also see TPPI producing mainly 92R gasoline with limited production of aromatics, a TPPI official said.

Pertamina had previously supplied TPPI with 1mn-1.5mn bl/month of domestic condensate under a third-party processing agreement that expired last May. The domestic condensate grades supplied include Arun, Bontang Return, Tangguh and Geragai.

TPPI is also targeting to increase the plant's operating rate that could hit up to 80,000 b/d of fuel production in November, although the increase in operating rates would depend on Pertamina's ability to meet feedstock requirements. Pertamina will likely have to import condensate such as Australian Northwest Shelf (NWS) condensate to hit such a production rate.

Four cargoes of NWS condensate are due to load in November. Chevron will load a 1-5 November cargo, while UK-Australian firm BHP Billiton will have a 7-11 November cargo. BP will load the 15-19 November cargo and Japanese trading house Mitsui will have the 23-27 November-loading cargo.

The third-party processing agreement is expected to last about three months, after which TPPI will be a separate entity from Pertamina. Pertamina is considering to acquire about 48pc of TPPI shares and plans to increase ownership in TPPI to about 76pc. The timeframe given until it reaches such ownership level is not yet clear.

TPPI has requested for the new agreement to last for at least one year, but the duration of the agreement will be left to Pertamina to decide.

Pertamina will market the benzene content extracted from the condensate. Initial benzene output is expected to be about 6,000-7,000 t/month, assuming a 20,000 b/d production rate. If TPPI ramps up production rates to 80,000 b/d, benzene output is expected to increase to about 20,000 t/month.

Pertamina officials could not be immediately reached for comment.

The Pertamina-led restart of the plant is in line with Indonesia's move towards reducing its reliance on gasoline imports. A global glut in crude supplies has resulted in improved refining margins for refineries.