Intensively Reduce Emissions, Pertamina Aims For Carbon Capture And Liquid Natural Gas Businesses

Illustration (Photo: Doc. Antara)

JAKARTA - Pertamina President Director Nicke Widyawati said that his party will develop an integrated Carbon Capture Storage (CCS) and Liquid Natural Gas (LNG) business to reduce carbon emissions.

In addition, Pertamina will also change the investment trend gradually from the oil business (fuel) to the carbon capture business and natural gas solutions.

Pertamina's business development is in line with the achievement of the government's target of reducing carbon emissions and NZE 2060.

Indonesia has a storage capacity of 400 gigatons of CO2. So, we can develop a regional center for CO2. And it is very important that the carbon trading mechanism must be formed so that CCUS becomes more economically viable," said Nicke Widyawati at the Bloomberg CEO of Forum at ASEAN quoted Thursday, September 7.

According to Nicke, countries in the world are facing the same serious problems related to climate change and the common goal of achieving net zero emissions.

"This goal means that all countries and companies are racing towards the same finish line, namely the achievement of net zero emissions," added Nicke.

He continued, Pertamina has carried out the right energy transition roadmap by maintaining a balance between reliability and national energy security while overcoming climate problems.

"Recognizing the business contribution that transmits carbon emissions, we will develop a negative carbon capture business, including carbon capture, utilization and storage (CCUS) and natural gas solutions," said Nicke.

In the long-term plan, Pertamina will allocate most of its investment, around 60 percent to 65 percent for the development of liquefied natural gas (LNG) in the upstream sector. In addition, Pertamina also allocates 15 percent of CAPEX to develop zero carbon businesses such as geothermal, solar and wind energy, which are very important in achieving net-zero emissions targets.

Our main goal is to achieve security and energy independence. It's important to note that although we continue to operate our oil and gas assets, we do so more aware of the environment through sustainable business operations," said Nicke.

Pertamina has started several decarbonization efforts to reduce emissions from existing business assets and succeeded in reducing carbon emissions by 31 percent.

This achievement has prompted Pertamina to become ranked second globally in integrated oil and gas sub-sectors in terms of ESG performance.

"We consider this a new start and remain committed to further initiatives," said Nicke.

Nicke added that gas remains an important transitional fuel with reliable energy capacity.

Therefore, Pertamina is committed to developing the upstream gas industry, including blue hydrogen, blue ammonia, methanol, and gas infrastructure needed throughout the value chain.