Pertamina allocates 60% of its capex to CCS and LNG

Pertamina CEO Nicke Widyawati at the Bloomberg CEO Forum ASEAN on “Transformation Today for Impact Tomorrow”, Wednesday (6/9). (Photo: Hartatik)

Jakarta – Pertamina will gradually shift its investment trend from the oil (fuel) business to the carbon capture storage (CCS) and liquefied natural gas (LNG) business in an integrated manner to reduce carbon emissions, according to the head of the state-owned company.

President Director of Pertamina Nicke Widyawati said that in the long-term, Pertamina will allocate most of its investment, at around 60% to 65% for the development of liquefied natural gas (LNG) in the upstream sector. She said, Pertamina also allocates 15% of its capital expenditure (capex) to develop zero-carbon businesses such as geothermal, solar and wind energy, which are crucial in achieving the net-zero emission target.

According to Widyawati, Pertamina’s business development is to achieve the government’s target of reducing carbon emissions and net zero emission (NZE) by 2060. Indonesia has a CO2 storage capacity of 400 gigatonnes, and at the same time it is important to establish a carbon trading mechanism to make the carbon capture, utilisation, and storage (CCUS) business economically viable, she said.

“Our ultimate goal is to achieve energy security and independence. It is important to note that while we continue to operate oil and gas assets, we do so in a more environmentally conscious manner through sustainable business operations,” Widyawati said.

Pertamina has initiated several decarbonisation efforts to reduce emissions from existing business assets and successfully reduced carbon emissions by 31%. This move has propelled Pertamina to be ranked second globally in 2022 by JP Morgan, in the integrated oil and gas sub-sector in terms of Environmental, Social and Governance (ESG) implementation performance. (Hartatik)

Pertamina implemented Carbon Capture Storage (CCS)/Carbon Capture Utilisation and Storage (CCUS) technology through the first injection of C02 at Pertamina EP Jatibarang Field, Indramayu, West Java on 27 October 2022. (Photo: Hartatik)

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