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BP Berau Ltd. has signed a memorandum of understanding (MoU) to support a study by PT Kilang Pertamina Internasional (Pertamina) on potential gas supply and carbon dioxide injection projects in Tangguh related to a potential blue ammonia development in Teluk Bintuni in Papua Barat, Indonesia.
The Pertamina study aims to support the potential growth in the petrochemical industry, specifically in Papua Barat, as an effort to help boost the local economy, BP said in a news release Wednesday.
The MoU also supports the energy transition by delivering clean energy products through BP’s Tangguh carbon capture, utilization, and storage (CCUS) project, which received development plan approval from the Indonesian government in 2021. The project, which is currently undergoing front-end engineering and design work, is “well-positioned and has potential to become the country’s first CCS [carbon capture and storage] hub for domestic and international emitters”, BP said.
Pertamina is studying the opportunity to optimize the gas supply potential in Teluk Bintuni, Papua Barat, while tapping the Tangguh CCUS project to produce blue ammonia, a clean energy alternative, the release said.
The contractors of the Tangguh production sharing contract (PSC) consist of BP and its affiliates in Tangguh, MI Berau B.V., CNOOC Muturi Limited., Nippon Oil Exploration (Berau) Ltd., KG Berau Petroleum Ltd., Indonesia Natural Gas Resources Muturi Inc., and KG Wiriagar Petroleum Ltd.
“As an energy company who has been in Indonesia for more than five decades, we are pleased to support Pertamina and the Government of Indonesia in their net zero agenda through potential gas supply and CO2 injection in Tangguh. This MoU signifies our strategic cooperation with Pertamina”, BP Asia Pacific President for Gas and Low Carbon Energy Kathy Wu said.
“PT Kilang Pertamina Internasional 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 cofiring”, Pertamina CEO Taufik Aditiyawarman said. “As a downstream refinery and petrochemical player, PT KPI collaboration with upstream O&G company to bring CCS technology is an essential factor in achieving Blue certification by reducing more than 70 percent of its CO2 emissions from the Ammonia production process. This MoU is a starting point of collaborative effort between Pertamina and BP to support net-zero agenda which has been an important commitment of the Government of Indonesia”.
According to the company website, Tangguh LNG is a unitized development of six gas fields located in the Wiriagar, Berau, and Muturi Production Sharing Contracts (PSCs) in Bintuni Bay, Papua Barat. Tangguh LNG is operated by BP Berau Ltd. and other BP plc subsidiaries at Tangguh LNG development—BP Muturi Holdings B.V., BP Wiriagar Ltd., and Wiriagar Overseas Ltd.—giving BP a 40.22 percent consolidated interest in Tangguh LNG. BP Berau Ltd is a subsidiary of BP plc, while PT Kilang Pertamina Internasional is a subsidiary of PT Pertamina (Persero).
In Papua Barat, BP’s presence comprises Tangguh LNG, offshore wells, and facilities. Tangguh is the largest gas producer in Indonesia, contributing approximately 20 percent of national gas production, with a total investment of around $10 billion, according to BP.
To contact the author, email rocky.teodoro@rigzone.com
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