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Committed to CO2 emissions reduction, Pertamina teams up with Japanese company and ITB
Indonesia’s largest oil and gas company, state-owned PT Pertamina (Persero) continues to actively advocate the government’s efforts to reduce greenhouse gas (GHG) emissions by 29 percent, or with international assistance by 41 percent by 2030.
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(Courtesy of Pertamina)
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ndonesia’s largest oil and gas company, state-owned PT Pertamina (Persero) continues to actively advocate the government’s efforts to reduce greenhouse gas (GHG) emissions by 29 percent, or with international assistance by 41 percent by 2030. The global commitment was made with the signing of the Paris Agreement at the Climate Change Conference (The Conference of Parties-COP 21) in Paris.
Pertamina’s commitment to CO2 emissions reduction aligns with the company’s environment, social and governance (ESG) principles.
The commitment has been reaffirmed by teaming up with Japanese Group, namely JANUS, JGC Corporation, J-Power and the Bandung Institute of Technology through a joint study agreement to study the implementation of carbon capture utilization and storage and enhanced gas recovery (CCUS/EGR) at the Gundih field project in Cepu, Central Java.
The JSA was signed virtually by Dannif Danusaputro, CEO of sub-holding power and new & renewable energy of Pertamina; Kazuhiko Chikamoto, representative director and president of JAPAN NUS Co., Ltd.; Yutaka Yamazaki, representative director and president of JGC Corporation; Sugiyama Hiroyasu, director & executive vice president of Electric Power Development Co., Ltd (J-POWER); and Prof. I Gede Wenten, M.Sc., Ph.D., vice rector for research & innovation at ITB.
The commitment the parties made at the JSA CCUS/EGR in the Gundih field was a milestone, one of Pertamina’s initiatives to reduce carbon emissions with potential reduction of 300,000 tons of CO2 per annum of the total 3 million tons of CO2 for 10 years, which, at the same time, has the potential to contribute to the increase in gas production.
The CO2 will be stored in a formation surface and will benefit enhanced gas recovery. The stored CO2 will be stated as carbon credit that will be shared between the governments of Indonesia and Japan.
“We are mandated to conduct Pertamina’s transition from an oil and gas company to an energy company where we will enhance our portfolio, and energy mix from new and renewable energy (NRE) and the CO2 emission reduction for decarbonization,” said Dannif Danusaputro.
Currently, Pertamina is preparing a decarbonization road map to support the control of global climate change and the CCUS and will become one of the initiatives that will reduce carbon significantly. A feasibility study will be conducted from June 2021 to February 2022. FEED (front end engineering design) and EPC (engineering, procurement and construction) will be conducted from 2022 to 2024 and is expected to start operation in 2026.
“We initiate to take part in the joint study. Hopefully we can enter the phase of commercialization immediately. I really appreciate all parties and I hope we can meet when the pandemic has ended and realize the breakthrough,” he added.
According to representative director and president of JAPAN NUS Co., Ltd, Kazuhiko Chikamoto, the decarbonization is a must for the government and private sector worldwide. The Japanese government has set an ambitious target of reducing CO2 emissions by 46 percent by 2030, a goal which calls for collaborative change to achieve. In this context, CCUS in Gundih field is not a mere decarbonization project, but also the best model of decarbonization practices in Asia. This is the highly innovative model that can be further developed in the near term.
“We appreciate Pertamina for giving us a big opportunity in the new Gundih field. The collaboration is a big step that has not been taken before,” said Kazuhiko Chikamoto.
