SUMMARY

BP and Indonesia's state-owned energy company Pertamina have signed a memorandum of understanding (MoU) to explore the potential for gas supply and...

By Shardul Sharma

BP and Indonesia's state-owned energy company Pertamina have signed a memorandum of understanding (MoU) to explore the potential for gas supply and carbon dioxide injection projects in Tangguh, West Papua, BP said on September 20. The study would also assess the potential for blue ammonia development in Teluk Bintuni.

Blue ammonia is produced from nitrogen and blue hydrogen, which is derived from natural gas feedstocks with the carbon dioxide by-product captured and stored. Blue ammonia is a clean energy alternative that can be used for a variety of purposes, including power generation, transportation, and fertilizer production.

The Tangguh production sharing contract (PSC) contractors include BP and its affiliates in Tangguh, MI Berau, CNOOC, Nippon Oil Exploration (Berau), KG Berau Petroleum, Indonesia Natural Gas Resources Muturi, and KG Wiriagar Petroleum.

The study by Pertamina aims to support potential growth in the petrochemical industry, specifically in Papua Barat, as an effort to help boost the local economy. This MoU is also paving the way for BP and Pertamina to support the energy transition by delivering clean energy products through Tangguh CCUS, BP said.

The Tangguh CCUS project by BP received plan of development approval from the Indonesian government in 2021, with the FEED work underway and project approval plans expected soon.

Pertamina is currently studying the opportunity to optimise the gas supply potential in Teluk Bintuni, Papua Barat, while utilising Tangguh CCUS to produce blue ammonia.