Pertamina Group, along with PIM, other state-owned enterprises, and our business partners are working to develop an integrated business plan to realize the utilization of low-emission energy source.
Jakarta (ANTARA) - PT PGN, the gas sub-holding of state-owned PT Pertamina (Persero), said it is developing downstream processing for an eco-friendly natural gas called blue ammonia to reduce carbon emissions in Indonesia.

The attempt is being made in collaboration with PT Pupuk Iskandar Muda (PIM), a subsidiary of state-run fertilizer manufacturer PT Pupuk Indonesia, it added.

"We will conduct a joint study regarding the downstreaming of eco-friendly natural gas and develop a gas-based business cooperation," PGN's director of business strategy and development, Heru Setiawan, said in a statement issued here on Wednesday.

Blue ammonia is processed through the carbon capture storage (CCS) method, making it more environmentally friendly, he explained. The substance can be used as fuel for power plants or vehicles, he said.

Hence, the project is in line with the government’s efforts to cut carbon emissions by up to 29 percent by 2030 as well as achieve net zero emissions by 2060, he added.

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"Pertamina Group, along with PIM, other state-owned enterprises, and our business partners are working to develop an integrated business plan to realize the utilization of low-emission energy source," the PGN director added

Furthermore, president director of PT PIM, Budi Santoso Syarif, said that his company plans to construct a blue ammonia plant in Iskandar Muda Industrial Area.

It will provide land to establish the new plant and utilities to operate the facility, he informed. Meanwhile, PGN will provide natural gas and gas infrastructure for the new plant, he added.

"The captured carbon dioxide (CO2) produced from the ammonia processing will be injected into oil and gas wells to increase the tonnage of oil recovery,” he informed.

Storing CO2 underground can increase oil and gas production, he pointed out. Thus, the manufacturing of blue ammonia has the potential to increase the profits of both PGN and PIM, he added.

Earlier, PGN and PIM had inked a memorandum of understanding (MoU) to establish business cooperation on February 24, 2022.
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Translator: Kelik Dewanto, Uyu Liman
Editor: Suharto
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