ExxonMobil Reaffirms Commitment to $15 Billion Natural Gas and CCS Investment in Indonesia

ExxonMobil has reiterated its commitment to a $15 billion investment in natural gas development and carbon capture and storage (CCS) projects in Indonesia. This significant investment addresses Indonesia’s energy needs while contributing to the global fight against climate change.

Strengthening Partnerships with Indonesia

Earlier this week, US business representatives, including Carole Gall, President of ExxonMobil Indonesia, met with Indonesian President Prabowo Subianto and Minister of Investment and Downstream Rosan Roeslani.

The meeting reaffirmed ExxonMobil's interest in continuing its investment in the country. This move comes on the heels of a similar agreement between Indonesia and BP, signed in late November 2024, which focuses on developing CCS capabilities at the Tangguh LNG facility in West Papua.

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ExxonMobil’s Carbon Capture and Storage (CCS) Plans

The first phase of ExxonMobil’s investment began in November 2023 with a Memorandum of Understanding (MOU). The company’s $2 billion budget for CCS projects will focus on reducing CO2 emissions and supporting the transition to cleaner energy.

A key component of ExxonMobil's plan is its partnership with Indonesia’s energy giant, Pertamina. Together, they will explore carbon storage solutions through the Asri Basin Project, launched in May 2024.

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Supporting Indonesia's Energy Transition

This collaboration aligns with Indonesia’s broader strategy to reduce reliance on coal plants and ramp up the use of natural gas. At the COP29 conference, Indonesia made clear its commitment to curbing coal development and shifting towards cleaner energy sources. The country's focus on natural gas will play a critical role in its energy transition, making the ExxonMobil partnership all the more significant.

A Growing Petrochemical Hub in Indonesia

ExxonMobil’s broader $15 billion investment agreement also includes the development of a major petrochemical hub in Indonesia. This hub will focus on producing polymers to meet the increasing demand for petrochemical products in Southeast Asia. By tapping into this growing market, ExxonMobil aims to strengthen its presence in the region.

ExxonMobil’s investment in Indonesia’s energy sector highlights the company’s ongoing efforts to balance economic growth with sustainability. The CCS projects and the development of natural gas capacity are crucial for both ExxonMobil and Indonesia as they work toward a greener future.

This partnership will not only help meet Indonesia’s energy needs but also contribute to global carbon reduction goals.