Having Many Old Oil And Gas Fields, Indonesia Potentially Becomes A CCS Center In Asia Pacific

Illustration of the oil and gas field (between)

NUSA Dua Indonesia has great potential to become a center for the application of carbon Capture Storage (CCS) and upstream oil and gas industry technology, utilization and carbon capture, Utilization, and storage (CCUS) in the Asia Pacific region.

Executive Director of the Indonesia CCS Center, Btondonna Troxylon Maulianda explained, this potential is possible because Indonesia has old oil and gas fields that are ready to become CO2 storage locations and support for strategic positions in the archipelago that are in the midst of Asia and Australia.

"If Indonesia succeeds in taking this opportunity and continuing its sustainability efforts, Indonesia will become a leader in the CCS market and can inspire other countries to invest in Indonesia," Belladonna said at the 4th International Convention on Indonesian Upstream Oil and Gas 2023 (ICIUOG 2023), Friday, July 22.

Just so you know, CCS can be used to capture and store CO2 produced by various industries. Meanwhile, CCUS is usually used by the upstream oil and gas industry to capture and store the CO2 they produce, as well as use it for other things, such as increasing production.

He further explained that the implementation of Carbon Capture Storage (CCS) and Carbon Capture, Utilization, and Storage (CCUS) emerged in the midst of the upstream oil and gas industry in line with the aspirations of this industry to gradually reduce carbon emissions as support Indonesia's commitment to become a country with net-zero emissions in 2060 or sooner.

"The enthusiasm of the upstream oil and gas company to develop CCS and CCUS is clearly reflected in the three days of the 2023 ICIUOG event," he added.

Anjaetzenrath, EVP Gas & Low Carbon Energy bp, said that currently the world energy company is developing a CCUS project at the Tangguh LNG Refinery in Papua. In the early stages, this project is expected to inject more than 30 million tons of CO2 back into the reservoir so that it can reduce emissions from the Tangguh Refinery by 50 percent.

"We believe that CCUS in Tangguh will be the first center of capture and carbon storage in Indonesia," said Anja.

Indonesia fully supports the development of CCS and CCUS in the upstream oil and gas industry. The Minister of Energy and Mineral Resources has issued Ministerial Decree No. 2/2023 concerning the Arrest of Storage Carbon (CCS) and the Arrest of Carbon Utilization and Storage (CCUS) in the upstream oil and gas industry.

This regulation regulates four focuses for the implementation of CCS-CCUS in the upstream oil and gas industry, including Technical Aspects, Business Scenarios, Legal Aspects, and Economic Aspects.

SKK Migas is currently also preparing Work Procedures (PTK) which will regulate how CCS-CCUS development can be integrated into field development plans. In addition, the government is also working on the Presidential Decree regarding the development of CCS and CCUS.