Global energy major BP (LON: BP) and Indonesia’s state-owned Pertamina are exploring a potential collaboration in the carbon capture, utilization, and storage (CCUS) project at the Tangguh gas development, which may involve Pertamina producing blue ammonia.
BP Berau Ltd, the operator of Tangguh, and PT Kilang Pertamina Internasional have entered into a memorandum of understanding (MoU), under which Pertamina will conduct a study on potential gas supply and carbon dioxide (CO2) injection in Tangguh related to potential blue ammonia development in the Teluk Bintuni Regency.
The MoU was signed at the 2023 Indonesia Oil & Gas (IOG) Forum that took place on September 20-22 in Bali, the UK-based major said in a statement last week.
Pertamina’s study is aimed at supporting the growth of the petrochemical industry in the Indonesian province of West Papua, where the Tangguh liquefied natural gas (LNG) project is located.
It would also stimulate the local economy and support energy transition.
Indonesian authorities have already given the green light for the plan of development (PoD) for the Tangguh CCUS project, with front-end engineering and design (FEED) work underway and project sanction on the horizon, BP said.
“This MoU signifies our strategic cooperation with Pertamina,” Kathy Wu, BP’s Asia Pacific regional president for gas and low carbon energy, commented on the announcement.
Tangguh, which receives its natural gas from three offshore production sharing contracts, has been identified as a potential carbon capture and storage (CCS) hub that could serve both domestic and international companies seeking to reduce their carbon emissions.
Pertamina is now considering leveraging Tangguh’s feed gas and CCUS capabilities to produce blue ammonia, a promising clean energy source for the future.
Taufik Adityawarman, president director of Kilang Pertamina Internasional, said that the company “is committed to solve the Energy Trilemma by providing not only sufficient and affordable, but also sustainable energy to the country by aggressively exploring new alternative clean energy, including Blue Ammonia, which is a key driver to clean electricity production with co- firing.”