Two subsidiaries of State energy company PT Pertamina − Pertamina New & Renewable Energy (Pertamina NRE) and PT Kilang Pertamina Internasional (KPI) − have signed a Head of Agreement (HOA) to develop the Flare Gas into electricity.

The agreement was signed by Pertamina NRE CEO John Anis and KPI President Director Taufik Aditiyawarman at Grha Pertamina in Jakarta on Wednesday, Febriary 12, 2025. A project expose was also held at the Balongan Refinery, Indramayu, West Java, where the initiative will be implemented.

John Anis emphasized that the Flare Gas to Power project is a strategic step for Pertamina to support energy transition and achieve Net Zero Emissions (NZE) by 2060. This technology converts flare gas into electricity, optimizing energy resources while significantly reducing carbon emissions. 

“The initiative aligns with our vision to maximize energy resources while cutting carbon emissions,” Jhon Anis said.

The project involves capturing flare gas, which would otherwise be burned into the atmosphere, purifying it, and directing it into gas turbines or generators. The resulting electricity will be used for refinery operations or distributed to the power grid. 

“This process not only enhances energy efficiency but also contributes to environmental conservation,” John Anis cited.

Meanwhile, Taufik Aditiyawarman said that this collaboration is expected to reduce CO2 emissions by 80,000 tons of CO2 equivalent per year, decrease gas consumption for boilers by over 2.5 MMSCFD (Million Standard Cubic Feet per Day), and save over US$9 million annually in fuel costs. 

“This project does not only cut greenhouse gas emissions, but also boosts refinery operational efficiency,” he said.

The partnership between KPI and Pertamina NRE is a concrete example of how strategic collaboration within Pertamina can lead to innovative solutions with positive environmental and economic impacts. 

“We believe this initiative will inspire future energy projects,” Taufik concluded.

Vice President for Corporate Communication at PT Pertamina, Fadjar Djoko Santoso, appreciated the synergy between Pertamina’s subholdings.

“This collaboration fosters innovation and benefits the community by creating a cleaner environment. Pertamina is optimistic that this project will be a milestone in the journey toward cleaner and more sustainable energy,” Fadjar said.