Committed to Reduce Carbon Emissions, PGN as Pertamina's Gas Subholding Signs MOU with Korea SK E&S

Jakarta, February 24, 2022 – In the attempt of developing clean energy, especially in the Liquid Natural Gas (LNG), hydrogen, and Carbon Capture and Storage (CCS) businesses, PT PGN Tbk as Pertamina's Gas Subholding establishes a synergy with an energy company from South Korea, namely SK E&S Co., Ltd (SK). This collaboration was also initiated to increase the growth of the natural gas business and efforts to reduce carbon emissions.

This collaboration was inaugurated in the signing of the MOU by PGN's Director of Strategy and Business Development, Heru Setiawan, and Vice President of SK E&S Co., Ltd, Ho Sik Lee, Tuesday (22/02/2022).

SK is a company that focuses on electricity, LNG, renewable energy, communal energy, city gas, various overseas energy businesses, and business development in hydrogen and CCS.

The CEO of Gas Subholding, PT PGN Tbk, M. Haryo Yunianto, explained that PGN and SK would conduct a joint study regarding the potential for cooperation in hydrogen and CCS development in Indonesia. In addition, PGN & SK will seek opportunities to develop gas business in Indonesia and Korea, including conducting LNG trading.

“SK has experiences and capability in the field of hydrogen and CCS development. With this MOU, it is hoped that PGN and SK can exchange information and communicate efficiently. Therefore, the appropriate technology to reduce carbon emissions in natural gas utilization can be applied," said Haryo.

CCS or carbon capture and storage includes reducing greenhouse gas emissions activities, such as separating and capturing carbon emissions or CO2 gas. Then the carbon emissions will be captured to the storage area or the injection target zone storage safely and permanently, in line with engineering rules.

PGN and SK are also considering opportunities for cooperation in LNG infrastructure, terminal utilization, LNG sales, purchase business activities, and gas or LNG business development in Korea.

"The MOU aims to support the preparation of a more comprehensive cooperation realization, both for discussion and implementation related to investment and utilization of the products or services of each party," said Haryo.

Haryo hopes that this collaboration will not only provide benefits for PGN and SK. But it also supports the government regarding Carbon Capture and Storage/Carbon Capture, Utilization, and Storage (CCS/CCUS) technology usage in the oil and gas industry. Thus, having a positive impact on the Indonesian economy. The government, through the Ministry of Energy and Mineral Resources, is developing the potential for CCS/CCUS cooperation as one of the business cooperation schemes in handling climate change.**