Pertamina, Japanese trio to explore LNG and biomethane projects in Indonesia

Pertamina, Osaka Gas, JGC Holdings, and Inpex have entered into a joint study agreement on exploring the feasibility of an LNG project in Indonesia involving the production of biomethane.

The project is to support the Asia Energy Transition Initiative (AETI), a plan that Japan unveiled in 2021 that aims to help achieve carbon neutrality in Asia through the energy transition.

Indonesia is the world’s largest producer and exporter of palm oil. Palm oil mill effluent (POME) contains large quantities of organic material resulting in significant methane emissions. The project is intended to contain POME-derived GHG emissions by sequestering methane and converting it to biofuels.

Through this joint study initiative, the parties will conduct a study on the feasibility of the project. This includes cooperation in the research and development of technologies and solutions pertaining to the production of bio-methane from POME resources in Sumatra and Kalimantan and supplying to consumers in Indonesia, including Java.

The aim of the project is to supply bio-methane through the existing gas grid, meet natural gas demand and contribute to the reduction of emissions. The parties will also jointly assess opportunities for the project to leverage carbon crediting mechanisms and biomethane certification schemes to secure carbon neutrality. Finally, the joint study will also involve identifying bio-methane/bio-LNG and bunker fuel marketing opportunities, including bio-LNG export to Japan and/or other countries

With this, Pertamina continues on several green energy development projects to reduce GHG emissions by 30 per cent before 2030. In addition to developing New and Renewable Energy (NRE), this collaborative project helps overcome environmental challenges especially by turning palm oil waste into environmentally friendly energy.

In this joint initiative, Pertamina will provide several facilities and locations with accessibility to raw material sources in Kalimantan and Sumatra.

The project is also aligned with the energy transition goals of all three Japanese companies.