ExxonMobil, Indonesia sign MoU for potential petrochemical complex development
ExxonMobil has signed a Memorandum of Understanding (MoU) with the Indonesian government to explore investment in an advanced petrochemical complex in Indonesia with potential nearby CO2 storage opportunities.
ExxonMobil Indonesia noted the MoU in a post to its official LinkedIn account.
In a separate release Jan. 22, the Coordinating Ministry for Economic Affairs of the Republic of Indonesia said the MoU could open “great opportunities for the development of the petrochemical sector in Indonesia,” and that the “MoU aims to explore the potential for ExxonMobil investment in the development of a world-class petrochemical complex in Indonesia, with an estimated investment value of $10 billion.”
If realized, this initiative aims to produce high-performance polymers to meet the growing industrial demand in Asia.
Coordinating Minister for Economic Affairs Airlangga Hartarto witnessed the signing Jan. 22.
According to the Ministry, Minister Airlangga said the project “supports the downstream policy of President Prabowo Subianto, helps in creating jobs during the construction period, and is a form of commitment to sustainable development because the construction of the CCS is expected to reduce CO2 emissions by up to 90%.” Additional details were not provided.
The MoU is expected to be the foundation for building a closer cooperation framework, including the establishment of a Joint Task Force tasked with coordinating steps to realize the project, the Ministry said.
Indonesia carbon storage potential
ExxonMobil has said Indonesia is 'strongly positioned' to become a major player in carbon storage sector, noting geological advantages and extensive expertise.
The operator has said the area could store large quantities of CO2, as the Indonesia Carbon Capture and Storage Center (ICCSC) estimates it holds space for as much as 700 Gigatonnes (Gt).
ExxonMobil is exploring potential for a CO2 storage site beneath shallow water of the Java Sea, an area it estimates could store 3Gt of CO2.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
