Indonesia anticipates $500mn spend on CCS: press
Indonesian energy firm Pertamina estimates that nearly a half-billion dollars in investments will be needed to deploy carbon capture and storage in the country, CNBC reported November 8
State-owned Pertamina signed a preliminary agreement November 2 with US major ExxonMobil to look for large-scale, low-carbon opportunities in Indonesia, including hydrogen and carbon capture and storage (CCS).
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"Our provisional estimate for investment needs is around $500mn, excluding operating costs that will be incurred during CCS operations," Daniel Purba, a senior vice president for corporate strategy at Pertamina, told CNBC Indonesia.
Data and analytics company GlobalData last month estimated that Indonesia is likely to start the operations of 27 midstream oil and gas projects between now and 2025, mainly in transmission pipelines and liquids storage segments.
“Indonesia, being one of the largest economies in Southeast Asia, is witnessing strong demand for oil and gas from both industrial and residential segments,” said GlobalData oil and gas analyst Bhargavi Gandham.
With the ongoing push, however, economies of scale like Indonesia are looking at CCS technology to lessen their environmental footprint.
Exxon said last week it would work with Pertamina to examine subsurface data to identify geologic formations deep underground that could be suitable to safely store CO2.