Indonesia’s state-owned Pertamina and global energy giant BP are exploring a potential collaboration in the carbon capture, utilization, and storage (CCUS) project at the Tangguh natural gas field, which may involve Pertamina producing blue ammonia.
BP Berau Ltd, the operator of Tangguh, and PT Kilang Pertamina Internasional have agreed a memorandum of understanding (MoU), under which Pertamina will conduct a study on potential gas supply and CO2 injection in Tangguh related to potential blue ammonia development in the Teluk Bintuni Regency.
The MoU was signed at the 2023 Indonesia Oil & Gas Forum that held on September 20-22 in Bali, according to BP’s statement.
Pertamina’s study is aimed at supporting the growth of the petrochemical industry in the West Papua province, where the Tangguh liquefied natural gas project is located. It would also stimulate the local economy and propel energy transition.
BP said that Indonesian authorities have already given the green light for the plan of development for the Tangguh CCUS project, with front-end engineering and design work underway and project sanction on the horizon.
Tangguh has been identified as a potential carbon capture and storage (CCS) hub that could serve both domestic and international companies seeking to cut carbon emissions.
Furthermore, Pertamina is considering leveraging Tangguh’s feed gas and CCUS capabilities to produce blue ammonia, a promising clean energy source for the future.
Taufik Adityawarman, president director of Kilang Pertamina Internasional, said that the company “is committed to solve the Energy Trilemma by providing not only sufficient and affordable, but also sustainable energy to the country by aggressively exploring new alternative clean energy, including Blue Ammonia.”