Committed to Reduce CO2 Emissions, Pertamina Cooperates with Mitsui to Explore CCUS Commercialization in Indonesia

Jakarta, April 7, 2022 - PT Pertamina (Persero) reaffirms its commitment to support Greenhouse Gas (GHG) emissions reduction by cooperating with Mitsui & Co., Ltd. through a Joint Study Agreement (JSA) to examine the commercialization of the Carbon Capture, Utilization and Storage (CCUS) technology application in the Central Sumatera region, Indonesia.

The signing of the JSA was carried out by the Director of Strategy, Portfolio, & Business Development (SPPU) of Pertamina, Iman Rachman, and General Manager of Sustainable Energy Development Division, Energy Business Unit I, Mitsui & Co., Ltd., Yasuchika Maruyama, witnessed by Shinichi Kikuchihara as President Director of PT Mitsui Indonesia, at Grha Pertamina, Jakarta, April 6, 2022.

Iman Rachman, Director of Strategy, Portfolio, and Business Development (SPPU) of Pertamina, said the agreement aims to conduct a feasibility study on the CCUS technology application in Central Sumatera, Indonesia. It also aims to explore the possibility of forming long-term strategic partnerships in decarbonization development to meet the energy transition target.

According to him, Pertamina and Mitsui will research on the technology for capturing, purifying, and storing CO2 according to the capacity and subsurface formation to obtain a comprehensive study result. Thus, optimum technology can be obtained.

Moreover, CO2 emission sources around the location of CO2 storage or utilization determination and mapping, the potential for CO2 receipts from other areas, and plans for the development of CCS/CCUS hubs and clusters to obtain new business. It also includes CO2 transportation via pipelines, trucks, and ships from the emission source to the location with the most efficient combination.

"We hope that the collaboration of this study can identify potential businesses for Pertamina and Mitsui in the energy industry in the future. In the era of the energy transition, Pertamina and other industries must make every effort to reduce and mitigate carbon emissions into the atmosphere to keep climate change under control. Government regulations, permits, support, and stakeholder cooperation, will be key factors for the success of this CCUS program," he explained.

The same thing was conveyed by the General Manager of Sustainable Energy Development Division, Energy Business Unit I, Mitsui & Co., Ltd., Yasuchika Maruyama. He warmly welcomed the collaboration, "This cooperation will not only strengthen good relations between Mitsui and Pertamina but also between Indonesia and Japan".

According to Maruyama, Indonesia is one of the leading oil and gas producers in Asia. Several oil and gas fields entering a production decline phase are expected to be reused. Meanwhile, Mitsui can draw on knowledge from CCUS projects in the UK and other countries. It is hoped that the two will create the CCUS value chain in the Asia Pacific. "We hope that with Pertamina, we can develop a cost-effective CCUS project by taking advantage of existing advantages in the form of synergy," he said.

As it is known, Pertamina continues to actively contribute to supporting the commitment of the Indonesian Government to reduce Greenhouse Gas (GHG) emissions by 29% in 2030 or 41% with international support. CCUS business development is one of the initiatives to support decarbonization and Enhance Oil/Gas Recovery (EOR/EGR) technology solutions in increasing oil and gas production in Indonesia.

"The application of CCUS technology is expected not only to reduce greenhouse gas emissions but also to have financial benefits for an inclusive carbon economy," stated Iman.**