Indonesia Ups CCS Game in Energy Transition

On 23 November, Indonesia President Joko Widodo participated in the groundbreaking for three upstream oil and gas projects, including the country’s first to include carbon capture and storage (CCS) technology in Ubadari offshore gas field in eastern West Papua province.

The Ubadari project has been classified as a national strategic project according to the Economy Regulation Number 21 of 2022 issued by Coordinating Minister for Economic Affairs Airlangga Hartoto.

Minister for Energy & Mineral Resources Arifin Tasrif, who also attended the ceremony, said Ubadari is a state-of-the-art CCS project that could hold up to 1.8 giga tons of CO2 trapped from the atmosphere. In the first phase, the project will inject around 30mn tons of CO2 into the reservoir, which will also help boost gas production.

The next project — also to be located in Papua — will use gas to produce low-carbon ammonia with a planned production of 875,000 tpy.

In our view, Udabari highlights the Indonesian government’s commitment to the energy transition and CCS technology. The groundbreaking comes on the heels of Jokowi’s recent inauguration of the country’s largest floating solar power plant in Cirata, West Java.

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