Jakarta – PT PGN Tbk (Pertamina Gas Subholding) and other Pertamina subsidiaries are collaborating with POSCO International from South Korea to develop a Carbon Capture and Storage (CCS) project in Indonesia, the company said in a written statement Tuesday, September 17.
This cooperation agreement was confirmed through the signing of a Joint Study Agreement (JSA) at the Indonesia International Sustainability Forum (IISF) 2024, which was held at the Jakarta Convention Center (JCC) on September 5, 2024.
This agreement continues the Memorandum of Understanding (MoU) signed on July 25, 2023, between Pertamina Group and POSCO International.
Under the agreement, PGN acts as a key party in the development of a CCS project that is expected to contribute significantly to the reduction of carbon emissions in Indonesia. The project will be implemented at Pertamina Hulu Energi Offshore Northwest Java PSC (PHE ONWJ) Field, one of Pertamina’s oil and gas fields.
“This joint study opportunity shows PGN’s serious commitment in initiating CCS projects to reduce carbon emissions. We hope that through this study, CCS technology can be applied appropriately, in order to achieve the emission reduction target,” said Rosa Permata Sari, PGN’s Director of Strategy and Business Development, in a written statement.
Also attending the signing ceremony were Pertamina CEO Nicke Widyawati, Pertamina Power Indonesia CEO John Anis, Pertamina International Shipping CEO Yoki Firnandi, and POSCO International President & CEO Lee Kye-In. This collaboration is expected to accelerate the implementation of CCS solutions that have great potential for climate change mitigation efforts and achieving the Net Zero Emission (NZE) target by 2060.
Rosa also explained that this project utilises PGN’s infrastructure, such as the gas transmission Right of Way (ROW) and the integration of carbon aggregators among PGN’s existing customers. In addition, this project has the potential to manage carbon emissions from other emitters located around PGN’s network.
The cooperation between PGN and POSCO International covers not only the development of CCS technology, but also the potential utilisation of carbon sources from other industrial sectors.
“We are working technically with PHE, PPI, and PIS to develop an in-depth study of this CCS technology. POSCO International is very interested in participating in this initiative as part of their commitment to climate change mitigation,” Rosa continued.
POSCO International, a subsidiary of POSCO Group, is actively involved in various global business sectors including steel, energy, and agricultural resources. They are now expanding their reach to CCS initiatives as part of their global strategy to reduce carbon emissions.
This collaboration is expected to not only have a positive impact on reducing carbon emissions in the energy sector, but also provide solutions for PGN customers who want to contribute to the national NZE target. This initiative is seen as an important step towards a sustainable energy future in Indonesia.
With this collaboration between two major companies, Indonesia has the opportunity to lead in the development of CCS technology in the Southeast Asian region, while strengthening its position in global efforts to address the challenges of climate change. (Hartatik)
