PGN And PIM Develop Gas Business To Support Carbon Emission Reduction

Facilities of PT PGN Tbk. ANTARA/HO-PT PGN Tbk

JAKARTA - PT PGN Tbk, as Subholding Gas PT Pertamina (Persero), together with PT Pupuk Iskandar Muda (PIM) are developing downstream development of environmentally friendly natural gas, namely blue ammonia to support the reduction of carbon emissions in Indonesia.

"We are ready to collaborate with PIM to conduct a joint study in the context of downstreaming natural gas and developing a gas-based (C1) business, which is environmentally friendly, especially related to the blue ammonia business," said PGN's Director of Strategy and Business Development Heru Setiawan in a statement in Jakarta, quoted by Antara. , Wednesday, March 2nd.

The memorandum of understanding for business cooperation was signed by PGN's Director of Strategy and Business Development Heru Setiawan and PIM's President Director Budi Santoso Syarif, Thursday, February 24.

Blue ammonia is ammonia that is processed through the carbon capture storage (CCS) stage during the production of H2, making it more environmentally friendly, easy to transport, and can be used as fuel for power plants or the transportation sector.

This is also in line with Indonesia's target of reducing carbon emissions by up to 29 percent and towards net zero emissions before 2060.

"Pertamina Group together with PIM, BUMN, and other business partners are trying to develop an integrated business plan covering all existing business potentials in order to realize cooperation through the use of energy with lower emission levels, in line with one of the priority issues of the three main issues of the Summit. G20 2022, including the role of natural gas in the energy transition," said Heru.

Meanwhile, President Director of Pupuk Iskandar Muda Budi Santoso Syarif said that one of PIM's future plans is to develop blue ammonia in the IMIA field, by cooperating with PGN as a provider of natural gas and gas infrastructure for a new ammonia plant.

PIM will provide land and utilities for plant operations and operate a blue ammonia plant due to PIM's long experience in operating fertilizer plants.

Carbon dioxide (CO2) produced in the ammonia plant will be captured and further treated in the form of CCS or carbon capture utilization unit (CCUS), so that ammonia is produced into blue ammonia.

"The CO2 produced will be injected into oil and gas wells to increase the tonnage of oil recovery. By storing CO2 underground, it can be an enabler for increasing oil and gas production. This has the potential to increase PGN and PIM profits," added Budi.