- The Ministry of Energy and Mineral Resources ("Ministry") is set to expand the potential for cooperation relating to the use of carbon capture and storage ("CCS") technologies and carbon capture, utilization and storage ("CCUS") technologies as a part of efforts to address the effects of climate change and to reduce carbon-dioxide emissions.
- Moreover, according to the Director-General of Oil and Gas at the Ministry, Tutuka Ariadji, the CCS/CCUS cooperation scheme that is being developed not only addresses the storage of carbon dioxide within the oil-and-gas field but also includes so-called “hub-clustering”, which should more broadly be able to accommodate various forms of cooperation through business schemes that specifically relate to climate-change management.
- According to Mr. Ariadji, there are three potential areas of CCS/CCUS cooperation, as follows: 1) Development of regional CCS/CCUS hubs and clustering management; 2) Development of the use of carbon dioxide in order to produce methanol; and 3) Development of blue hydrogen and blue ammonia plus CCS.
- CCS/CCUS development cooperation in relation to oil-and-gas business activities is an integral part of the CCS/CCUS regulatory framework that is currently being deliberated and that is expected to be completed in the near future. The scope of this new regulatory framework encompasses the following areas: 1) Technical aspects; 2) Business scenarios; 3) Legal aspects; and 4) Economic aspects.
- As additional information, total carbon-dioxide emissions from the oil-and-gas supply sector have been estimated at 1.1 gigatons per year. However, the carbon-dioxide capacity of depleted oil and gas can be reduced to just 52.6% when emissions are injected into depleted oil-and-gas reservoirs.
- The underground storage of carbon dioxide should ultimately be an enabler as regards increased production of oil and gas, a development which is highly welcomed by the government as it maintains space for national storage capacity. (ANT)
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