NUSA Dua - BP Berau Ltd (bp) as the Tangguh operator and PT Kilang Pertamina Internasional today signed a Memorandum of Understanding (MoU) to cooperate in supporting a study that Pertamina will conduct regarding potential gas supply and CO2 injection in Tangguh related to the potential development of blue ammonia in Bintuni Bay, West Papua.
Tangguh Result Sharing Cooperation Contract Contractors (PSC) consist of bp and its affiliates in Tangguh, MI Berau BV, CNOOC Muturi Limited., Nippon Oil Exploration (Berau), Limited, KG Berau Petroleum Ltd., Indonesia Natural Gas Resources Muturi, Inc. and KG Wiriagar Petroleum Ltd.
The signing of the MoU was carried out at The 4th International Convention on Indonesian Upstream Oil and Gas (ICIUOG) 2023, in Nusa Dua, Bali, Wednesday 20 September. The study conducted by Pertamina aims to support growth potential in the petrochemical industry, especially in West Papua as an effort to help improve the local economy.
This MoU also paved the way for bp and Pertamina in supporting energy transitions by providing clean energy products through Tangguh CCUS.
Asia Pacific Regional BP President, Gas & Low Carbon Energy, Kathy Wu said, this collaborative effort could be a breakthrough in paving the way for producing clean energy from this country.
"As an energy company that has been operating in Indonesia for more than five decades, we are proud to support Pertamina and the Indonesian government in the net zero agenda through potential gas supply and CO2 injection in Tangguh. This MoU signifies our strategic cooperation with Pertamina," he said.
It is known that the CCUS Tangguh Project conducted by bp has received approval from the Indonesian government in 2021, with the ongoing FEED work and project approval plans in the near future. Tangguh is in the right position and has the potential to become the first CCS center in the country for both domestic and international emissions.
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Currently, Pertamina is studying opportunities to optimize gas supply potential in Bintuni Bay, West Papua, as well as benefit CCUS Tangguh to produce blue ammonia, as an alternative to clean energy for the future.
President Director of PT KPI Taufik Aditiyawarman said the company is committed to completing the Energy Trilema by providing energy that is not only sufficient and affordable, but also sustainable for countries to aggressively explore new alternative clean energy, including blue ammonia, which is one of the main drivers of net electricity production with co-firing.
"As a business actor in the downstream refinery and petrochemical sector, PT KPI's collaboration with upstream oil and gas companies to carry CCS technology is an important factor in achieving Blue certification by reducing more than 70 percent of CO2 emissions from the ammonia production process," concluded Taufik.
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