GS Caltex held a completion ceremony for a palm oil refinery of AGPA Refinery Complex (ARC), its joint venture with POSCO International, in Balikpapan, Indonesia, on Nov. 19.
Approximately 100 people attended the ceremony, including GS Caltex Vice Chairman and CEO Hur Sae-hong, POSCO International President Lee Kye-in, officials from both companies, the Indonesian government and the Korean Embassy in Indonesia, industry representatives and local residents.
GS Caltex and POSCO International established ARC in Indonesia, the world’s largest producer of palm oil, in 2023.
Through this joint venture, the two companies invested a total of 260 billion won to build a palm oil refining facility on a 300,000-squre-meter site within the Balikpapan Industrial Complex in East Kalimantan. Construction began in May last year.
The newly completed ARC facility processes crude palm oil (CPO) into refined palm oil products, including biodiesel feedstock and edible oils, and has an annual refining capacity of approximately 500,000 tons.
POSCO International supplies ARC with crude palm oil sourced from farms in Indonesia, enabling the production of refined palm oil.
The resulting output will be sold not only in Indonesia but also in neighboring markets such as Korea and China.
GS Caltex will leverage its process operational expertise to enhance ARC’s efficiency and supply the refined palm oil used as biodiesel feedstock to the Korean market.
With the completion and start of operations at the new facility, GS Caltex has secured a stable supply of biodiesel feedstock, including palm stearin, and established an integrated biodiesel value chain spanning raw material sourcing through to product manufacturing and sales.
“The completion of the ARC palm oil refining facility represents a tangible achievement in our Green Transformation strategy and a meaningful milestone in strengthening GS Caltex’s position in the global bio market,” Vice Chairman and CEO Hur emphasized at the ceremony.
1st Place in Premium Gasoline Category of KS-QEI
GS Caltex’s premium gasoline brand, “Kixx Prime,” took first place in the newly established Premium Gasoline category at the 2025 Korean Standard-Quality Excellence Index (KS-QEI) No. 1 Certification Ceremony hosted by the Korean Standards Association on Nov. 28.
The prize is a recognition of GS Caltex’s superior product performances, earning consumer trust and continuous efforts for quality innovation.
The company has consistently maintained the top spot in the premium gasoline market share standings since 2011.
Kixx Prime is a high-octane premium gasoline that prevents engine misfires, enhances power output, and reduces noise and vibration for a more comfortable and quiet driving experience.
It boosts acceleration responsiveness and power output in both high-performance and standard vehicles, allowing drivers to experience smoother, more powerful acceleration.
The gasoline also contains high-performance engine detergents and friction reducers.
With continued use, it removes impurities from inside the engine of a car and cuts friction loss between the piston and cylinder, significantly enhancing fuel efficiency and extending engine life.
Carbon-Free Steam Introduction and Supply Agreement’ with Namhae Chemical
GS Caltex announced on November 3 that it had signed Carbon-Free Steam Introduction and Supply Agreement’ with Namhae Chemical on Oct. 31 at the GS Tower in Seoul.
GS Caltex’s carbon-free steam introduction and supply business involves reactivating Namhae Chemical’s idle sulfuric acid plant within the Yeosu Industrial Complex to produce carbon-free steam which will be supplied to GS Caltex’s Yeosu Complex to replace its existing LNG-based steam.
Under the arrangement, GS Caltex will supply sulfur, a byproduct of crude oil refining, to Namhae Chemical which will use it as feedstock to produce sulfuric acid.
The exothermic reaction from this process will be harnessed to produce carbon-free steam without emitting CO₂. The resulting steam will then be supplied to GS Caltex.
GS Caltex anticipates this initiative will deliver annual carbon reductions of approximately 70,000 tCO₂eq1 compared to conventional LNG-based steam production.
The two companies plan to begin work early next year on the construction of steam pipelines, a modification of Namhae Chemical’s sulfuric acid plant, and the construction of new sulfuric acid storage tanks, with commercial operations planned for 2027.
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