17-11-2023

ExxonMobil to develop a petrochemical project and establish CCS facilities in Indonesia

Exxon Mobil Corporation intends to allocate a substantial investment, amounting to $15 billion, to develop a petrochemical project and establish carbon capture and storage (CCS) facilities in Indonesia.

The investment in the petrochemical project primarily revolves around the production of polymers.

ExxonMobil’s investments aim to create the most extensive CCS facilities in Southeast Asia. The CCS hub has the capacity to store a minimum of 3 gigatons of carbon dioxide emitted by industries in Indonesia and the broader region.

ExxonMobil recently entered into an initial agreement with one of its units to explore potential investment opportunities in a petrochemical project in Indonesia. The collaborative effort, in partnership with the Indonesian state energy company Pertamina, involves exploring a $2 billion investment in CCS facilities that would utilize two underground basins in the Java Sea.

Oil and gas companies are actively involved in carbon capture and storage projects, which offer a transition pathway for the rapid and effective reduction of CO2 emissions beyond what can be achieved by alternative methods like electrification and renewable fuels. Thus, the use of carbon capture and storage in reducing industrial emissions offers an excellent opportunity.

Indonesia is actively working on a regulatory framework that would repurpose its depleted oil and gas reservoirs for carbon storage. The forthcoming regulation is set to enable the storage of carbon from international sources within the country.

The large-scale opportunities hold significant potential to greatly enhance both industrial growth and decarbonization efforts not only within Indonesia but also across the broader Asia Pacific region.