Reducing Carbon Emissions, PGN Signs MoU With SK E&S Korea

JAKARTA - PT PGN Tbk, as the Gas Subholding PT Pertamina (Persero), signed a memorandum of understanding (MoU) with an energy company from South Korea, SK E&S Co Ltd (SK) in order to increase the growth of the natural gas business as well as to reduce carbon emissions.

The signing of the MOU for cooperation in developing clean energy, especially in relation to the liquid natural gas (LNG), hydrogen, and carbon capture and storage (CCS) business was carried out by PGN Strategy and Business Development Director Heru Setiawan and SK E&S Co Ltd Vice President Ho Sik. Lee in Jakarta, Tuesday, February 22.

SK is a company that focuses on electricity, LNG, renewable energy, communal energy, city gas, various overseas energy businesses, and hydrogen and CCS business development.

The CEO of Pertamina Gas Subholding PT PGN Tbk M Haryo Yunianto in a statement in Jakarta, Thursday, explained that PGN and SK will prepare a joint study regarding the potential for cooperation in the development of hydrogen and CCS in Indonesia.

In addition, PGN and SK are also jointly looking for opportunities to develop the gas business in Indonesia and Korea, including doing LNG trading.

"SK has experience capabilities in the field of hydrogen and CCS development. With this MoU, it is hoped that PGN and SK can exchange information and communicate more efficiently, so that they can apply the right technology to reduce carbon emissions in natural gas utilization," said Haryo as quoted by Antara, Thursday, February 24.

CCS or carbon capture and storage includes activities to reduce greenhouse gas emissions which include segregation and capture of carbon or CO2 emissions.

Then, transport carbon emissions, which are captured, to the storage area as well as to the injection target zone safely and permanently, according to engineering rules. PGN and SK are also considering working together in LNG infrastructure, terminal utilization, LNG sales and purchase business activities, as well as business development. gas or LNG in Korea.

"This MOU aims to support the preparation for the realization of a more comprehensive cooperation, both discussion and implementation in relation to investment and utilization of the products or services of each party," said Haryo.

Haryo also hopes that this collaboration will not only provide benefits for PGN and SK, but also support the government regarding the use of CCS technology and carbon capture, utilization, and storage (CCS/CCUS) in the oil and gas industry, so that it can have a positive impact on the Indonesian economy.

The government through the Ministry of Energy and Mineral Resources is developing the potential for CCS/CCUS cooperation as one of the business schemes of cooperation in dealing with climate change.