ExxonMobil Corporation, one among the world’s leading oil and gas giants, is reportedly planning to commit $15 billion to construct petrochemical and carbon capture and storage (CCS) facilities in Indonesia. The CCS project will deal with the event and implementation of carbon capture and storage technologies to cut back CO2 emissions.
According to Carole Gall, President of ExxonMobil Indonesia, this project represents a tangible commitment of the corporate to support Indonesia’s sustainable energy transition.
The investment plan was announced Tuesday during a gathering between Indonesian President Prabowo Subianto and a number of other U.S. business leaders, including Carole Gall, on the State Palace. The meeting was a part of the agenda of the US-ASEAN Business Council (US-ABC), which was attended by 50 representatives of the Council’s member firms.
As a reminder, the Indonesian government previously met with ExxonMobil in San Francisco in late 2023. These talks focused on a $15 billion investment commitment to develop CCS technology in Indonesia.
Other investments in carbon capture projects
Apart from ExxonMobil, one other essential player investing in an analogous sector is British Petroleum (BP), a British oil and gas company that has already ventured into Indonesia. BP has committed $7 billion to an ongoing carbon capture and storage (CCUS) project in West Papua.
Earlier, President Prabowo Subianto met with 19 leaders of the UK’s largest firms to debate various strategic investment opportunities in Indonesia, including BP. During the meeting, BP CEO Murray Auchincloss announced a commitment to take a position $7 billion within the Tangguh Ubadari, CCUS and Compression (UCC) projects.
This project is estimated so as to add roughly 3 trillion cubic meters of natural gas reserves in Indonesia, helping to fulfill the growing energy demand within the Asian region.
The UCC project includes the event of the Ubadari gas field, enhanced gas recovery (EGR) through the usage of carbon capture and storage (CCUS) technology and the operation of onshore compression facilities.
It also goals to optimize and expand existing infrastructure on the Tangguh LNG complex in West Papua, Indonesia. Production from the Ubadari deposit is scheduled to start in 2028.
