BP Berau Ltd (BP) as production sharing contract (PSC) operator for Tangguh LNG and the Bandung Institute of Technology (ITB) have signed a cooperation agreement to advance research and development on Carbon Capture and Storage (CCS) and Carbon Capture, Use and Storage (CCUS) in Indonesia.
The agreement was signed by Kathy Wu, BP Asia Pacific Regional President for Gas and Low Carbon Energy, and I Gede Wenten, Deputy ITB Rector for Research and Innovation, on the first day of the 2024 International & Indonesia CCS Forum (IICCS) in Jakarta on July 31, 2024.
Cooperation Agreement covers feasibility study with the goal to support Tangguh CCUS project and develop Tangguh CCS hub and mark the implementation of Memorandum of Agreement that has been signed by two parties in October 2023.
Besides feasibility study, the cooperation agreement also details scholarships provided by Tangguh for Master and Doctoral students at ITB and infrastructure support for the Center of Excellence for CCS and CCUS at ITB.
Tangguh hopes that the CCUS project and the CCS hub can be a model test for carbon capture and storage project in the future in Indonesia and Asia Pasific. Collaboration with prominent education institution, such as ITB, is important to make sure the progress of the projects, and the progress of the application of CCS/CCUS in Indonesia and support energy security and emmision reduction agenda in Indonesia,” Kathy said.
“We are proud to be partner of Tangguh in advancing CCUS and CCS activities in Indonesia, and to support State efforts for decarbonization. This cooperation also strengtens our journey to be the international center of research and development for CCUS and CCS,“ I Gede Wenten said.
On the same occassion, Secretary at the Upstream Oil and Gas Regulatory Task Force (SKK Migas), Luky A, Yusgiantoro, praised the cooperation between BP and ITB as part of the effort to accelerate the implementation of CCUS and CCS in Indonesia and encourage the competency of human resources as part of an integrated ecosystem in the development of CCUS and CCS.
“ The provision of human resources for the implementation of CCUS and CCS is very important considering this sector will grow in the future. And of course we hope that Indonesia will become one of the countries that have competitive human resources in the CCUS and CCS sectors,” Luky said.
The Tangguh CCUS project is currently the most advanced CCUS project in Indonesia. In its initial phase, the project has the potential to inject more than 30 million tons of CO2 back into the reservoir, which could contribute 5 percent of Indonesia’s energy sector climate contribution target (NDC). With a storage capacity of up to 1.8 gigatons of CO2, Tangguh has the potential to become a regional CCS hub and help realize the net zero ambitions of Indonesia and the Asia Pacific.
Overview of Tangguh
Tangguh is Indonesia’s largest natural gas producer, with average LNG production of 2.1 billion cubic feet per day, which accounts for about one-third of national gas production. Tangguh supplies an average of 60 LNG cargoes per year to domestic market through sales contracts with State electricity company PLN.
BP operates Tangguh LNG with a 40.22 percent participating interest, alongside partners MI Berau B.V. (16.30 percent), CNOOC Muturi Limited (13.90 percent), Nippon Oil Exploration (Berau) Ltd. (12.23 percent), KG Berau Petroleum Ltd. (8.56 percent), KG Wiriagar Petroleum Ltd. (1.44 percent), and Indonesia Natural Gas Resources Muturi Inc. (7.35 percent).
