Indonesia’s Pertamina, ExxonMobil, and South Korea’s KNOC agreed to develop a carbon capture and storage (CCS) hub in Indonesia.
Pertamina and ExxonMobil will collaborate on the initial phases of building the CCS hub in the Sunda-Asri basins in the Java Sea. KNOC will also join the partnership to inject its emissions into the facility.
Nicke Widyawati, chief executive of Pertamina, announced this at the Indonesia Petroleum Association’s annual conference. Indonesia aims to use its depleted oil and gas reservoirs and saline aquifers for carbon storage, potentially storing hundreds of gigatonnes of CO2.
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The Indonesian government issued a presidential regulation on carbon capture and storage (CCS), enabling CCS operators to allocate 30% of their storage capacity for imported carbon dioxide (CO2) this year.
This regulation allows oil and gas contractors to use depleted reservoirs or aquifers within their blocks for CCS operations. The government believes this could potentially store over 400 gigatonnes of CO2 equivalent.
The Indonesian government would collect royalties from storage fees charged by the CCS operators.