Chevron, Pertamina Partner On Lower Carbon Opportunities
U.S. oil and gas supermajor Chevron has announced a partnership to explore potential lower carbon business opportunities in Indonesia with Pertamina.
Aimed at serving local and potentially regional customers, Chevron and Pertamina plan to consider novel geothermal technologies, carbon offsets through nature-based solutions, carbon capture, utilization, and storage (CCUS) as well as lower carbon hydrogen development, production, storage, and transport.
The partnership follows the signing of a Memorandum of Understanding in Washington attended by the VP of Corporate Business Development for Chevron Jay Pryor, CEO of Pertamina Nicke Widyawati, Coordinating Minister for Maritime and Investment Affairs of the Republic of Indonesia Luhut B. Pandjaitan, and the Minister of Investment and Head of BKPM Bahlil Lahadalia.
“We are excited to build upon Chevron’s nearly 100-year history in Indonesia. This MoU demonstrates Chevron and Pertamina’s commitment to continue identifying lower carbon opportunities through collaboration and partnership between Chevron, national energy companies, and governments, all of which have a shared interest in advancing national energy transition,” said Jeff Gustavson, President of Chevron New Energies. “Through our potential work in Indonesia, and the entire Asia Pacific region, we hope to provide affordable, reliable, ever-cleaner energy, and help the industries and customers who use our products advance their lower carbon goals.”
The partnership between Chevron and Pertamina is part of efforts from both companies to support the Government of Indonesia’s net-zero emission target in 2060. Pertamina is committed to increasing its renewable energy mix from 9.2 percent in 2019 to 17.7 percent in 2030.
“Pertamina, as the largest state-owned energy company in Indonesia, remains committed to accelerating the energy transition per the government's targets. This partnership is a strategic step for Pertamina and Chevron to complement each other’s strengths and develop lower carbon energy projects and solutions to promote energy independence and domestic energy security," said Nicke Widyawati.
Indonesia, the second largest country with geothermal installed capacity, has developed geothermal since 1974. Currently, Pertamina has a total installed geothermal capacity of almost 1.9 GW originating from 13 geothermal work areas, of which 672 MW come from work areas that are operated independently and 1.2 GW are joint operation contracts.
Nicke added that Pertamina was also developing the implementation of CCS and CCUS as one of the company's strategies to reduce carbon emissions in two oil and gas fields namely Gundih and Sukowati. The Indonesian firm is also reviewing the commercialization of the application of CCUS technology in the Sumatra region.
The Indonesian government currently has an energy transition roadmap as part of the Grand National Energy Strategy. In the roadmap, the use of renewable energy is targeted to reach 23 percent by 2025. Meanwhile, the government has also acknowledged the importance of a collaborative approach to achieving lower carbon goals.
“Without a doubt, efforts to boost lower carbon energy projects cannot be done alone. In the future, we hope that world-class oil and gas companies, such as Pertamina and Chevron, can partner to further reduce carbon emissions and advance energy transition as mandated by the Government of Indonesia," concluded Pandjaitan.
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