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 West Papua, Indonesia.
Pertamina’s study aims to support the potential growth of the petrochemical industry, specifically in West Papua, as an effort to help boost the local economy, BP said in a press release on Wednesday.
The MoU also supports the energy transition by delivering clean energy products through BP’s Carbon Capture, Utilization and Storage (CCUS) Tangguh project, which received development plan approval from the government of Indonesia in 2021. The project, which is currently in the front-end engineering phase. and design work, is “well positioned and has the potential to become the first CCS in the country [carbon capture and storage] center for national and international issuers,” BP said.
Pertamina is studying the opportunity to optimize gas supply potential in Teluk Bintuni, West Papua, while tapping the Tangguh CCUS project to produce blue ammonia, a clean energy alternative, the statement said.
Tangguh Production Sharing Contract (PSC) contractors are BP and its subsidiaries in Tangguh, MI Berau BV, 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 with more than five decades in Indonesia, we are pleased to support Pertamina and the Indonesian government in their net zero agenda through the potential gas supply and CO2 injection at Tangguh. This memorandum of ‘agreement signifies our strategic cooperation with Pertamina,’ said Kathy Wu, president of gas and low-carbon energy at BP Asia Pacific.
“PT Kilang Pertamina Internasional is committed to solving the energy trilemma by providing not only sufficient and affordable but also sustainable energy to the country by aggressively exploring new alternative clean energies, including blue ammonia, which is a key driver for the clean electricity production with co-combustion.” said Pertamina CEO Taufik Aditiyawarman. “As a downstream refinery and petrochemical player, PT KPI’s collaboration with the upstream O&G company to provide CCS technology is an essential factor in achieving Blue certification by reducing more than 70 percent of its CO2 emissions of the ammonia production process. This MoU is a starting point of a collaborative effort between Pertamina and BP to support the zero agenda, which has been an important commitment of the Indonesian government.”
According to the company’s website, Tangguh LNG is a unitary development of six gas fields located in the Wiriagar, Berau and Muturi Production Shared Contracts (PSCs) in Bintuni Bay, West Papua. Tangguh LNG is operated by BP Berau Ltd. and other subsidiaries of BP plc in the Tangguh LNG development (BP Muturi Holdings BV, BP Wiriagar Ltd. and Wiriagar Overseas Ltd.), giving BP a consolidated 40.22 percent stake 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 West Papua, BP’s presence includes Tangguh LNG, offshore wells and facilities. Tangguh is the largest gas producer in Indonesia, contributing about 20 percent of the country’s gas production, with a total investment of about $10 billion, according to BP.
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