Oil and gas major ExxonMobil has provided another confirmation signal of its committment to a massive $15 billion investment in developing natural gas with carbon capture and storage (CCS) in Indonesia.
Earlier this week a meeting between U.S. busness representatives and President Prabowo Subianto and Minister of Investment and Downstream Rosan Roeslani was held, where they spoke with Carole Gall, President of ExxonMobil Indonesia who reiterated the company’s interest.
The reaffirmed intention follows news of a $7 billion agreement between Indonesia and bp in late November 2024 which will see the development of carbon capture capabitlities that aim to sequester 15 million tonnes of CO2 emissions from the Tangguh liquefied natural gas facility in West Papua.
ExxonMobil plans for carbon capture in Indonesia
The first phase of this substantial Exxon investment began in November 2023 when the two sides signed an MOU. The CCS projects will have a $2 billion budget and are part of a broader $15 billion investment agreement between ExxonMobil and Indonesia which will see the development of a large petrochemical hub focused on the production of polymers to satisfy the region’s growing demand.
Indonesia’s energy giant Pertamina and ExxonMobil have already begun collaborating with an agreement for appraisal drilling signed in May 2024. These location for these first tests is Asri Basin Project CCS hub with a view to determining of both the technical and commercial viability of a carbon storage business model.
The plans are also in line with Indonesia’s commitment to curb the development of coal plants made recently at COP29, setting the scene for more natural gas capacity which the country sees as a key part of its energy transition.
Read more: Pertamina And ExxonMobil Team Up On Carbon Capture Project
