The Coordinating Ministry for Maritime Affairs and Investment has announced that the final investment decision (FID) for the carbon capture and storage (CCS) project in the Sunda-Asri Basin area, offshore Southeast Sumatra, will be made no later than 2026.
Jodi Mahardi, Deputy for Coordination of Sovereignty, Maritime, Energy at the Coordinating Ministry for Maritime Affairs and Investment said that drilling appraisals would be conducted this year.
“Currently, the implementation progress is on track, and drilling appraisals will be conducted this year,” Jodi said in Jakarta on Wednesday, April 24, 2024.
The CCS project candidates are being developed by State emnergy company PT Pertamina in collaboration with ExxonMobil. Pertamina has identified the carbon storage potential in the basin to reach 2 gigatons of CO2.
“The FID for Sunda-Asri can be made within the next 1 to 2 years,” Jodi said.
On the other hand, Jodi mentioned that former British Prime Minister Tony Blair is committed to promoting CCS investment in Indonesia by exploring potential offtakers. Through the Tony Blair Institute for Global Change, Blair is expected to facilitate cross-border cooperation in future CCS implementations.
“Mr. Tony Blair also expressed hopes to continue assisting and cooperating with other countries, especially in cross-border collaborations,” he said.
Previously, President Director of PT Pertamina (Persero) Nicke Widyawati said that Pertamina has conducted independent studies and found a total carbon storage potential of 400 gigatons from all oil and gas basins in Indonesia. Nicke noted that domestic CCUS implementation is becoming more relevant with the continued need for oil and gas utilization until zero carbon emissions or net zero emission (NZE) by 2060.
The implementation of CCUS technology is known to be a crucial factor in the current industry’s adaptation to energy transition. “The proportion of new and renewable energy use in the 2060 energy mix is 51 percent, meaning there are still emissions. Therefore, it is important to discuss CCUS,” Nicke said.
Based on identification of 20 production basins, the Ministry of Energy and Mineral Resources estimates that domestic carbon storage capacity in saline aquifers reaches 572.77 gigatons of CO2, significantly higher than the 2015 calculation of 9.7 gigatons of CO2.
