Pertamina is set to develop an integrated business in Carbon Capture Storage (CCS) and Liquefied Natural Gas (LNG) to reduce carbon emissions.
President Director of Pertamina, Nicke Widyawati, stated that Pertamina will gradually shift its investment focus from the oil business to carbon capture and natural gas solutions. This development follows the government's goals of reducing carbon emissions and achieving Net Zero Emissions by 2060.
'Indonesia has a CO2 storage capacity of 400 gigatons. Thus, we can establish a CO2 Hub. It is essential to establish carbon trading mechanisms to make CCUS economically viable,' said Nicke Widyawati at the Bloomberg CEO Forum at ASEAN in Jakarta on Wednesday, September 6, 2023.
According to Nicke, countries worldwide are facing the same serious climate change issues and share the common goal of achieving net zero emissions. This goal means that all nations and companies are racing towards the same finish line: achieving net zero emissions.
Nicke continued by stating that Pertamina has been following the right energy transition roadmap, balancing national energy reliability and security while addressing climate issues.
'Recognizing the carbon emissions legacy of our business, we will develop carbon-negative businesses, including carbon capture, utilization, and storage (CCUS), as well as natural gas solutions,' Nicke added.
In the long-term planning, Pertamina will allocate a significant portion of its investments, around 60% to 65%, for liquefied natural gas (LNG) development in the upstream sector. Additionally, Pertamina will allocate 15% of its CAPEX to develop zero-carbon businesses such as geothermal, solar, and wind energy, which are crucial in achieving the net-zero emissions target.
'Our primary goal is to achieve energy security and self-sufficiency. It is important to note that while we continue to operate our oil and gas assets, we do so with greater environmental awareness through sustainable business operations,' Nicke stated.
Pertamina has initiated several decarbonization efforts to reduce emissions from its existing business assets and has reduced carbon emissions by 31%. This achievement has propelled Pertamina to rank second globally in the integrated oil and gas sub-sector in terms of ESG performance.
'We see this as a new beginning and remain committed to further initiatives,' said Nicke.
Nicke added that gas remains a crucial transitional fuel with reliable energy capacity. Therefore, Pertamina is committed to developing the upstream gas industry, including blue hydrogen, blue ammonia, methanol, and the necessary gas infrastructure across the value chain.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.
Source: Pertamina
