BP and Pertamina Sign MoU to Support Gas Supply and CO2 Injection Potential Study at Tangguh Related to Blue Ammonia Development by Pertamina
Jakarta, September 21, 2023 – BP Berau Ltd (BP), the operator of Tangguh and acting on behalf of the Tangguh Production Sharing Contract (PSC) Contractors, and PT Kilang Pertamina Internasional (Pertamina), a subsidiary of PT Pertamina (Persero), today signed a Memorandum of Understanding (MoU) to collaborate in supporting a study by Pertamina on the potential gas supply and CO2 injection at Tangguh, related to the blue ammonia development potential in Teluk Bintuni, West Papua.
The Tangguh Production Sharing Contract (PSC) Contractors include bp and its affiliates in Tangguh, MI Berau B.V., CNOOC Muturi Limited, Nippon Oil Exploration (Berau) Limited, KG Berau Petroleum Ltd., Indonesia Natural Gas Resources Muturi, Inc., and KG Wiriagar Petroleum Ltd.
Signed at the Indonesia Oil & Gas Forum (IOG) 2023, held from September 20-22, 2023, in Nusa Dua, Bali, the study conducted by Pertamina aims to support the potential growth in the petrochemical industry, especially in West Papua, as an effort to boost the local economy. This MoU also paves the way for bp and Pertamina to support the energy transition by providing clean energy products through Tangguh CCUS.
The Tangguh CCUS project by bp received Plan of Development approval from the Indonesian government in 2021, with the FEED work underway and project approval plans soon. Tangguh is strategically positioned and has the potential to become the country's first CCS hub for both domestic and international emissions.
Currently, Pertamina is exploring opportunities to optimize gas supply potential in Teluk Bintuni, West Papua, and leverage Tangguh CCUS to produce blue ammonia as one of the clean energy alternatives for the future. This collaborative effort could be a breakthrough in paving the way for clean energy production in the country.
Kathy Wu, Regional President of Asia Pacific, Gas & Low Carbon Energy of bp, said: "As an energy company that has been operating in Indonesia for over five decades, we are proud to support Pertamina and the Indonesian government in their net-zero agenda through the potential gas supply and CO2 injection at Tangguh. This MoU signifies our strategic collaboration with Pertamina."
Taufik Aditiyawarman, President Director of PT Kilang Pertamina Internasional, stated: "PT Kilang Pertamina Internasional is committed to solving the Energy Trilemma by providing energy that is not only sufficient and affordable but also sustainable for the country by aggressively exploring new clean energy alternatives, including blue ammonia, which is a major driver of clean electricity production through co-firing. As a downstream refinery and petrochemical player, PT KPI's collaboration with upstream oil and gas companies to bring CCS technology is crucial in achieving Blue certification by reducing over 70% of CO2 emissions from the Ammonia production process. This MoU marks the beginning of a collaborative effort between Pertamina and bp to support the net-zero agenda, which has become a significant commitment of the Indonesian government."
Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, supports this KPI collaboration initiative, as it can contribute to energy transition development for both Pertamina and Indonesia. "This is a crucial step towards energy transition development. Besides maintaining national energy resilience, Pertamina has a role to play as a leader in supporting the net-zero emission target," said Fadjar.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**