Subsidiaries of BP BP.L and Pertamina plan to work together to explore additional gas supply and the production of so-called blue ammonia at the Tangguh liquefied natural gas (LNG) plant in Indonesia under an outline agreement signed on Wednesday.

The memorandum of understanding signed by the two companies at the 2023 Indonesia Oil & Gas (IOG) Forum also covers exploring the injection of carbon dioxide as part of a carbon capture utilisation and storage (CCUS) project at Tangguh.

The Tangguh CCUS project, led by BP, has received approval from the Indonesian government, and has the potential to become the country’s first CCS hub for both domestic and international emitters, BP said in a statement.

Around the world, companies are exploring CCUS and innovative fuels such as blue ammonia, produced using natural gas, as they seek to shift to lower carbon fuels and reduce the impact of global warming.

CEO of PT Kilang Pertamina Internasional Taufik Aditiyawarman said the Pertamina subsidiary was committed to “providing not only sufficient and affordable, but also sustainable energy”.
Source: Reuters (Reporting by Ashley Fang; editing by Barbara Lewis)