Indonesia is pushing ahead with carbon capture, storage and utilization ambitions

Indonesia’s national oil company Pertamina and Mitsui of Japan have launched a joint feasibility study to commercialize carbon capture, use and storage (CCUS) in Indonesia.

The study aims to assess the underground carbon storage capacity of the declining oil and gas fields, including the Rokan Block on the coast of Central Sumatra.

Pertamina recently took over the helm at Rokan after Indonesian authorities rejected former operator Chevron’s request to extend its production-sharing agreement.

One of the country’s largest onshore assets, Rokan is home to vast mature oil fields including Minas and Duri.

Using the rich technical data and existing infrastructure in Pertamina’s fields, we will strive to jointly develop a cost-effective CCUS project where synergies can be expected based on economies of scale, Mitsui said.

Sources of carbon dioxide emissions in the vicinity of proposed storage or use sites will be identified and mapped along with plans for the development of carbon capture and storage (CCS)/CCUS centers and clusters.

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The Japanese contractor and Pertamina will also explore the commercial potential of building a CCUS value chain, including CO capture and transport2 Emissions from industrial plants, power plants and other facilities.

This study will also examine the potential for uptake of CO2 not only from Indonesia, probably via pipeline or truck, but also from other countries, including Japan, via ship transport, with the aim of creating a new low-carbon solutions business in Indonesia.

The two companies would also explore the possibility of a long-term partnership on decarbonization and the transition to clean technology, Pertamina said in a statement.

CCUS development is one of Indonesia’s strategies to achieve net-zero emissions by 2060 and the government is currently drafting legislation for the sector.

“In the energy transition era, Pertamina and other industries must make every effort to reduce and mitigate carbon emissions into the atmosphere to keep climate change under control,” said Iman Rachman, director of Pertamina.

Government regulations, permits, support and collaboration with stakeholders will be key factors in the success of this CCUS initiative, he added.

“The application of CCUS technology is expected to not only reduce greenhouse gas emissions but also have financial benefits for an inclusive carbon economy,” Iman said.

CCS/CCUS programs also offer the potential for enhanced oil recovery and enhanced gas recovery from existing and future fields in the Republic.

Repsol is planning a CCS program along with the development of its Sakakemang (Kali Berau Dalam) gas field in Sumatra.

This initiative envisages 2 million tons of CO2 annually in the depleted Gelam and Dayung fields in an adjacent block from 2027, with a total of 30 million tons of carbon dioxide avoided by this CCS project by 2040.

It will be the first CCS project deployed by Repsol and the first in Indonesia, according to the Spanish operator.

British supermajor BP also has plans for a CCUS program in the next phase of its Tangguh liquefied natural gas project in West Papua province. This CCUS project will cause approximately 25 million tons of CO2 injected back into the Vorwata field reservoir to eliminate venting and increase performance through improved gas recovery.

This program is expected to remove up to 90% of the reservoir-associated carbon dioxide, which currently accounts for almost half of all Tangguh’s LNG emissions.

Meanwhile, Pertamina is monitoring CCUS at its Gundih and Sukowati fields on the Java coast.

The governments of Indonesia and Japan agreed earlier this year to collaborate on decarbonization technologies, including hydrogen, ammonia and CCS.

Already involved in CCUS projects in the UK and other countries, Mitsui now aims to create a CCUS value chain in the Asia-Pacific region through its partnership with Pertamina, thereby accelerating CCUS commercialization projects around the world.

Hailing Indonesia as “one of Asia’s top oil and gas producers,” Mitsui said oil and gas fields entering the production decline phase are expected to be reused in CCUS-related deals.

“CCUS is expected to play a significant role in helping the Asia-Pacific region achieve a low-carbon economy while meeting its growing energy needs.

“By leveraging our expertise in the oil and gas upstream business and our extensive business networks, both of which are Mitsui’s strengths, we will work closely with Pertamina to provide industrial CO2 reduction solutions in Indonesia,” said Toru Iijima, chief operating officer of Mitsui’s Energy Business Unit 1 and Energy Solution Business Unit.

“Through the development of CCUS-related businesses around the world, Mitsui continues to contribute to the creation of an environmentally friendly society.”

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