Speed EBT Project, Pertamina Prepare 11.2 Billion US Dollars For Capital Expenditures

Illustration (Photo: Doc. Antara)

JAKARTA - PT Pertamina (Persero) has allocated capital expenditure (capex) of 11.2 billion US dollars until 2026 for clean energy projects.

President Director of Subholding Power and Renewable Energy Pertamina Dannif Danusaputro explained that the capital expenditure allocation was around 14 percent of the company's total capital expenditures until 2026 which amounted to 70-80 billion US dollars.

In Pertamina's projection, continued Dannif, the upstream sector will absorb 45 percent of capital expenditures and the downstream sector by 37 percent.

"The remaining 4 percent for other portfolios. On average, other energy companies project a capital expenditure of around 4.3 percent," said Dannif in a written statement, Jakarta, Monday, September 26.

Dannif said that later the cost to make the energy transition would be very large. Moreover, this is a global demand.

This requires all companies to redesign strategies to achieve the production target followed by emission reduction.

He added that Pertamina's energy mix will also change significantly by 2030.

In 2021, Pertamina's energy mix will reach 2.3 MT Joule with 81 percent of processing products (excluding LPG), 15 percent of LPG processing products and 3 percent of gas.

"By 2030, NRE's portion will increase to 17 percent and gas 19 percent, while processing products will decrease to 61 percent and LPG will decrease to 3 percent," said Dannif.

To achieve the target, added Dannif, Pertamina has several projects and activities that have been running for a long time, namely geothermal, hydrogen development, participating in the development of electric vehicle batteries and energy storage systems, and building a green industrial cluster.

In addition, Pertamina is also developing green refinery, bio energy, natural based solution (NBS) projects and EBT development such as solar PV, as well as other initiatives.

In addition, Pertamina also took part in the Demtyl Ether (DME) project which is targeted to be completed in 2025.