Indonesia issues regulation on carbon capture, storage

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has issued a regulation on the implementation of carbon capture and storage (CCS) as well as carbon capture, utilisation and storage (CCUS). This is part of the government’s effort to lower carbon emissions and boost oil and gas output. ESDM Minister Arifin Tasrif said that the regulation focuses on technical, business, legal and economic aspects. Specifically, it encourages oil and gas companies operating in the Southeast Asian country to install carbon capture facilities at workplaces. Indonesia has geological formations that can be used to store carbon emissions permanently through the use of technology.Companies should put forward detailed proposals for government approval, he said. The carbon injected into their reservoirs could come from the oil and gas industry as well as other industries. Indonesia has so far approved one CCUS project at BP’s Tangguh LNG project in West Papua province. Its state energy company Pertamina conducted several studies on CCUS with partners, namely ExxonMobil and Mitsui, in carbon injection tests at some of its oil fields late last year. Japan’s Inpex Corporation is expected to submit a revised plan of development for its Abadi LNG project, which is related to CCUS.