Dive into the Midstream & Downstream in the Energy Sector

Jun 06, 2024

On Saturday, May 4th, 2024, the Science Course Division of SPE ITS SC organized an event titled "Dive into Midstream & Downstream." The event delved deep into two crucial segments of the energy industry which provide participants with valuable insights into their significance, challenges, and innovations.

Mr. Dimas Cameeo Wicaksono, Assistant Project Construction at PT Perusahaan Gas Negara, kickstarted the event by shedding light on midstream activities. These activities play a pivotal role in facilitating the interconnectedness of various aspects of the energy industry. Throughout his session, Mr. Dimas covered the transportation, storage, and distribution of oil and gas, the key components of midstream infrastructure, as well as the challenges during the midstream process.

He explained the complex network of pipelines, tankers, and terminals that form the infrastructure for transporting hydrocarbons from extraction sites to refineries and distribution centers. Central to midstream operations are the various components of infrastructure that facilitate the processing and transportation of oil and gas. He provided an overview of crucial facilities such as pipelines, compressor stations, storage tanks, and terminals, as well as the protection and supporting facilities in LNG terminal infrastructure.

While midstream activities are essential for ensuring the availability of energy resources, they are not without their challenges. Mr. Dimas also shed light on the various issues encountered during the midstream process, such as vandalism/illegal tapping by third parties.

Following Dimas's insightful presentation, Mochammad Helmy Aditya, Process Commissioning Engineer at PT Kilang Pertamina Balikpapan, took the stage to deep dive into the downstream sector. This segment explored the current trends, challenges, and innovations shaping downstream operations. One area of focus lies within the refinery operations, particularly the Fluid Catalytic Cracking (FCC) and Residue Fluid Catalytic Cracking (RFCC) units. These units are pivotal in the conversion of heavy hydrocarbon feedstocks into lighter, higher-value products.

Mr. Helmy explained about FCC and RFCC units which are vital components of modern refineries that facilitate the conversion of heavy residual oils and vacuum gas oils into valuable gasoline, diesel, and petrochemical feedstocks. These units employ catalytic cracking processes to break down large hydrocarbon molecules into smaller, more desirable products.

He explored the unit integration within FCC-RFCC operations involving complex coordination between various sections, including reaction, separation, treating, and upgrading. Moreover, the quality parameters of feed and product streams in FCC-RFCC operations are critical for ensuring product performance, environmental compliance, and market acceptance. Parameters such as sulfur content, octane number, density, and aromatic content are closely monitored to meet regulatory requirements and customer specifications. For PT Kilang Pertamina Internasional, adherence to stringent quality standards is essential to maintain product integrity and competitiveness in the marketplace.

Lastly, Mr. Helmy also highlights the environmental considerations that play a significant role in the operation of FCC-RFCC units, particularly in minimizing emissions, waste generation, and energy consumption. PT Kilang Pertamina Internasional prioritizes environmental stewardship by implementing advanced emission control technologies, optimizing energy efficiency, and promoting sustainable practices throughout its operations.

Despite being held online, the event attracted many participants who were eager to expand their knowledge of midstream and downstream operations. Participants enthusiastically engaged with the speakers by actively asking questions and participating in discussions.

As the sessions drew to a close, the Research and Information Division conducted a Petroquiz covering the materials and topics presented during the event. The quiz challenged participants' understanding of midstream and downstream concepts which provided an opportunity to reinforce their learning. After an intense competition, Christian Gunawan emerged as the winner who will earn the SPE Knowledgebook as a token of recognition.

Written by: Arya Nugraha Aulia Rahman Yusup

Similar Article

Unlocking Indonesia’s Hidden Energy Treasures: The Future of Oil and Gas Exploration

Indonesia is at a crucial point in its oil and gas journey. On one hand, the country has vast untapped energy resources that could fuel the economy for years to come. On the other, many of its existing oil fields are aging, leading to declining production. In 2023, Indonesia’s oil and gas industry was valued at around IDR 280 trillion, and experts predict it could grow to IDR 1,050 trillion by 2032. However, sustaining this growth will require new discoveries and smarter investments in exploration.Right now, Indonesia produces about 576,000 barrels of oil per day (bpd), and the government hopes to push this number to 600,000 bpd by 2025. However, the challenge is that 70% of Indonesia’s oil wells are mature, meaning their output is slowing down. If new reserves aren’t developed soon, Indonesia will have to rely more on imports, which could drive up costs and impact energy security.The good news? There’s still a massive opportunity waiting to be explored. Out of 128 sedimentary basins across Indonesia, only 20 are actively producing oil and gas. That means 68 basins remain untouched, offering huge potential for new discoveries. If properly explored, these areas could significantly boost Indonesia’s production and reduce dependence on imported oil.To tap into this potential, both domestic and international companies are stepping in with major investments. One of the biggest projects is Eni’s Geng North Project, a IDR 192 trillion gas project expected to start production by 2027. Similarly, BP is expanding its Tangguh LNG facility in West Papua with a IDR 112 trillion investment, incorporating carbon capture technology to make production more efficient and sustainable. Meanwhile, Petronas is increasing its footprint in Indonesia by setting up operations in East Java and exploring other regions. These investments highlight global confidence in Indonesia’s oil and gas potential.The government isn’t standing still either. Under President Prabowo Subianto, several initiatives are in place to attract more foreign investment, reactivate 5,000 idle oil wells, and speed up the permitting process for new projects. If these efforts are successful, Indonesia could see a major boost in oil and gas production, strengthening energy security and ensuring long-term economic stability.

RDMP Balikpapan Expected to Boost Domestic Diesel Supply as Indonesia Sets 2026 Zero-Import Goal

Indonesia is set to eliminate diesel imports in 2026, supported by the upcoming operation of the Refinery Development Master Plan (RDMP) Balikpapan, operated by PT Pertamina (Persero). Based on the latest update, the project is now scheduled to be inaugurated by President Prabowo Subianto on 17 December 2025, marking the entry of Indonesia’s largest refinery upgrade into commercial operation. Previously, Minister of Energy and Mineral Resources, Bahlil Lahadalia had stated that the RDMP Balikpapan inauguration was planned for 10 November 2025 following a limited cabinet meeting with President Prabowo on 3 November 2025. At the time, he emphasized that the refinery upgrade would enable Indonesia to meet domestic diesel demand entirely through national production. “Insya Allah, starting 2026 we will no longer import diesel,” Bahlil said. “Because our RDMP refinery in Balikpapan will be inaugurated.” Despite the rescheduled inauguration, the government maintains that RDMP Balikpapan will play a decisive role in strengthening fuel self-sufficiency. The facility is expected to significantly increase Indonesia’s refining capacity and support the national objective of achieving zero diesel imports while also boosting aviation fuel (avtur) supply for both domestic and export markets. The RDMP Balikpapan project is designed to modernize one of Indonesia’s strategic refineries by increasing production capacity, improving fuel quality, and enhancing operational efficiency. The refinery upgrade forms part of Pertamina's long-term downstream investment roadmap to reduce reliance on petroleum imports, strengthen supply resilience, and improve state fiscal performance by reducing the foreign exchange burden from imported fuels. In support of the refinery expansion, the government is also pushing for the implementation of B50 biodiesel, which blends 50% palm oil-based fuel. According to Bahlil, the synergy between RDMP Balikpapan and B50 could shift the domestic diesel balance from deficit to surplus. “If both RDMP and B50 run well, we will have excess diesel and we can export it,” he asserted. The ministry is currently calculating the production forecast and export potential once both programs are fully executed. To date, Indonesia has relied on imported diesel to bridge the gap between domestic refinery capacity and fuel consumption. The cessation of diesel imports is expected to reduce logistics vulnerability during global price fluctuations, strengthen energy independence, and improve the trade balance. Policymakers have highlighted that diesel remains a critical fuel for transportation, mining, agriculture, and industrial sectors, meaning its secure supply is closely tied to national economic performance. The RDMP Balikpapan project has been categorized as a strategic national program due to its magnitude and expected economic impact. The government anticipates that its operation will contribute to regional economic activity, promote industrial employment, and accelerate technology transfer in refinery modernization. Stakeholders, including local governments, logistics operators, and energy-intensive industries are monitoring the commissioning timeline as it will determine fuel distribution adjustments across Kalimantan and other regions. Further information regarding refinery output, the detailed implementation roadmap for B50, and mechanisms for potential diesel exports is expected to be released after the inauguration in November. For now, the government maintains the target of achieving diesel self-sufficiency in 2026, marking what could become a significant milestone in Indonesia’s long-term energy security agenda.Writer: Azzahra Luna Prasetyo

SPEctra (SPE Career on Track): Developing Essential Skills for Future Leaders

On Saturday, March 2nd, 2024, the Soft Skills Division of the SPE ITS SC held SPEctra (SPE Career on Track). This intensive bootcamp is designed to meet the increasing demand for equipping future leaders with essential skills necessary for the modern professional world. SPEctra consists of comprehensive training targeting key aspects of leadership and professional proficiency.SPEctra emerged as a dynamic response to the need for leadership development in today's complex work environments. The program was established to empower participants by honing their abilities in team motivation, conflict management, and strategic decision-making. Grounded in the belief that exceptional leadership is a cultivated skill rather than an innate trait, SPEctra aims to prepare individuals to navigate challenges, foster collaboration, and make informed decisions.Mr. Windo Julioardi, Manufacturing Manager at Danone Aqua, delivered a keynote presentation on "Developing Soft Skills for Decent Work." His insights underscored the importance of soft skills in achieving professional success and contributing to sustainable development.Participants in SPEctra engaged with a case study centered around the theme "Innovating and Impacting Through UN SDGs." This theme encouraged participants to devise solutions that aligned with the United Nations Sustainable Development Goals (SDGs) which promotes innovation and impactful outcomes. Throughout the bootcamp, participants worked on progressing their case solutions, guided by structured sessions and mentors. Participants partook in an mentoring session, where they developed decision-making solutions through creative activities such as cardboard prototyping. This hands-on approach facilitated a deeper understanding of the case study and fostered innovative thinking. The mentoring session resulted in discussions and preparations for the presentation phase. After submitting their case solutions, participants presented their work. The top three submissions were selected for final presentations that were held offline. The presentation session also featured expert speakers, Lala Cig, who addressed "Strategies for Effective Problem Solving" and "Aligning Professional Growth with UN SDGs." This session provided participants with practical strategies and insights for tackling complex problems and aligning their career growth with global sustainability goals.The event concluded with a closing ceremony and an awarding session to appreciate the outstanding efforts of the participants.Written by: Arya Nugraha Aulia Rahman Yusup

China's Petrochemical Surge Drives Global Oil Demand, Raises Environmental Concerns

China's petrochemical – important components in many of the products that we use every day, such as clothing and detergents – surge is driving global oil demand growth, with the country's imports and production of naphtha and propane as petrochemical feedstocks reaching record-highs. This trend is expected to continue even as China's diesel and gasoline demand is expected to peak by 2025. Petrochemical feedstocks are expected to account for more than 40% of the 5.9 million barrels per day increase in global oil demand when it reaches 105.7 million barrels per day by 2030. According to the International Energy Agency (IEA), the speed and scale of China's expansion in the petrochemical sector are unprecedented, substantially outpacing previous capacity additions in the Middle East and the United States.How is the surge in petrochemicals affecting the environment?The recent increase in the petrochemical industry has a significant environmental impact and presents a number of sustainability challenges that must be addressed. The production, utilization, and disposal of petrochemical products lead to heightened greenhouse gas emissions, poor air quality, and water contamination. The increased demand for petrochemicals also drives global oil demand, expected to raise the proportion of lighter oil products needed for petrochemicals, thereby exacerbating greenhouse gas emissions. In addition to that, petrochemical manufacturing processes release harmful airborne toxins, resulting in health issues like cancer, especially affecting low-income neighborhoods, particularly communities of color.