ExxonMobil Corporation, one of the world's leading oil and gas giants, is reportedly planning to allocate US$15 billion to establish petrochemical and carbon capture and storage (CCS) facilities in Indonesia. This CCS project will focus on the development and implementation of carbon capture and storage technologies to reduce CO2 emissions.
According to Carole Gall, President Director of ExxonMobil Indonesia, this project represents the company's tangible commitment to support Indonesia's sustainable energy transition.
The investment plan was announced during a meeting between Indonesian President Prabowo Subianto and several U.S. business leaders, including Carole Gall, at the State Palace on Tuesday. The meeting was part of the agenda of the US-ASEAN Business Council (US-ABC), which was attended by 50 representatives of the Council's member companies.
To recall, the Indonesian government had previously met with ExxonMobil in San Francisco in late 2023. These discussions focused on a $15 billion investment commitment focused on the development of CCS technology in Indonesia.
Other Investments in Carbon Capture Projects
In addition to ExxonMobil, another major player investing in a similar sector is British Petroleum (BP), a UK-based oil and gas company that has previously ventured into Indonesia. BP has committed US$7 billion to its Carbon Capture Utilization & Storage (CCUS) project in West Papua, which is already underway.
Previously, President Prabowo Subianto held a meeting with 19 leaders of major British companies to discuss various strategic investment opportunities in Indonesia, including with BP. During the meeting, BP Chief Executive Officer Murray Auchincloss announced a commitment to invest US$7 billion in the Tangguh Ubadari, CCUS and Compression (UCC) project.
This project is estimated to add approximately 3 trillion cubic feet of natural gas reserves in Indonesia, helping to meet growing energy demand in the Asia region.
The UCC project includes the development of the Ubadari gas field, enhanced gas recovery (EGR) through the application of carbon capture utilization and storage (CCUS) technology, and the operation of onshore compression facilities.
It also aims to optimize and expand the existing infrastructure at the Tangguh LNG complex in West Papua, Indonesia. Production from the Ubadari field is expected to commence in 2028.
