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bp and Pertamina subsidiaries have signed a memorandum of understanding (MoU) to explore additional gas supply and production of blue ammonia at the Tangguh liquefied natural gas (LNG) plant in Teluk Bintuni, Papua Barat, Indonesia.

Signed at the 2023 Indonesia Oil & Gas (IOG) Forum, the MoU will also see bp support Pertamina in a study for carbon dioxide (CO₂) injection through the Tangguh carbon capture utilisation and storage (CCUS) project.

The MoU was signed between bp Berau and Kilang Pertamina Internasional.

Blue ammonia is produced from nitrogen and blue hydrogen, which is derived from natural gas feedstocks.

Hydrogen production leaves CO₂ as a by-product, which is captured and stored.

According to bp, the study by Pertamina intends to assist expansion in the petrochemical industry, specifically in Papua Barat to strengthen the local economy.

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By GlobalData

Currently, Pertamina is exploring ways to increase the gas supply in Teluk Bintuni, while using the Tangguh CCUS to produce blue ammonia.

The Indonesian government approved the development plan for the bp-operated Tangguh CCUS project in 2021.

FEED work is currently underway, and the project sanction is anticipated soon.

bp Berau regional president of Asia Pacific, gas & low carbon energy Kathy Wu said: “As an energy company that has been in Indonesia for more than five decades, we are pleased to support Pertamina and the Government of Indonesia in their net zero agenda through potential gas supply and CO₂ injection in Tangguh.”

Kilang Pertamina Internasional CEO Taufik Aditiyawarman said: “Kilang Pertamina Internasional is committed to solve the Energy Trilemma by providing not only sufficient and affordable but also sustainable energy to the country by aggressively exploring new alternative clean energy, including Blue Ammonia, which is a key driver to clean electricity production with co-firing.

“This MoU is a starting point of collaborative effort between Pertamina and bp to support net zero agenda which has been an important commitment of the Government of Indonesia.”