Jakarta. BP Berau Ltd (bp) and Kilang Pertamina Internasional, the subsidiary of the state-owned oil and gas firm, recently agreed to launch a study to assess the possibility of injecting carbon dioxide in Tangguh.

This freshly inked memorandum of understanding (MoU) is also related to the development of blue ammonia in  Teluk Bituni, West Papua. The signing ceremony took place at the recent 2023 Indonesia Oil & Gas Forum in Bali. The study aims to spur growth in the petrochemical industry, specifically in West Papua, in a bid to boost the local economy. The MoU is expected to pave the way to support the two signatories’ energy transition by adopting carbon capture, utilization, and storage (CCUS) in the Tangguh project.

According to a press release, the Tangguh CCUS project carried out by BP has gotten the government’s approval in 2021. A FEED plan is underway. Pertamina and BP also said that the Tangguh CCUS project had the potential to be the country’s first CCS hub for both domestic and international emitters.

A Pertamina study is currently in place to find out the possibility of optimizing the gas supply in Teluk Bintuni while utilizing the Tangguh CCUS project to produce blue ammonia.

“As an energy company with operations in Indonesia that span over five decades, we are proud to support Pertamina and the Indonesian government’s net zero agenda by exploring the gas supply and carbon dioxide injection potential in Tangguh,” Kathy Wu, BP Regional President Asia Pacific, Gas & Low Carbon Energy was quoted as saying in a recent press statement.

Taufik Aditiyawarman, the president director at Kilang Pertamina Internasional, said his company pledged to not only provide sufficient and affordable energy, but also sustainable.

“That is why we are aggressively exploring clean energy alternatives, including blue ammonia, to spur clean power generation through co-firing,” Taufik said.

“[This collaboration] is pivotal to achieve blue certification by reducing over 70 percent of carbon emissions in the ammonia production process,” Taufik added.

Fadjar Djoko Santoso, the vice president for corporate communication at Pertamina, said that the partnership was key to driving energy transition and energy security. Fadjar also said that Pertamina played a role in supporting the country’s net zero emission targets.

Tangguh PSC Contractors consist of bp and its affiliates in Tangguh, MI Berau B.V., CNOOC Muturi Limited., Nippon Oil Exploration (Berau), Limited, KG Berau Petroleum Ltd., Indonesia Natural Gas Resources Muturi, Inc., KG Wiriagar Petroleum Ltd.