ExxonMobil to invest in Indonesia CCS facilities, petrochemical complex

SINGAPORE (ICIS)–ExxonMobil has committed to invest in carbon capture and storage (CCS) facilities as well as a new petrochemical complex in Indonesia, the biggest economy in southeast Asia.

A memorandum of understanding (MoU) was signed between Indonesia’s Coordinating Ministry for the Economy and ExxonMobil on the prospective projects, the ministry said on 22 January.

The MoU aims to explore ExxonMobil’s “investment potential in the construction of a world-class petrochemical complex in Indonesia, with an estimated investment value of $10 billion”, it said.

“ExxonMobil will build a project related to CCS,” Indonesia’s coordinating minister for economic affairs Airlangga Hartarto said in a post on social media platform X on 22 January, adding that the US oil and gas company will also build a petrochemical plant.

“This MoU not only strengthens the national petrochemical sector but also brings Indonesia closer to its vision as a pioneer of green technology at the global level,” Hartarto said.

ExxonMobil has yet to reply to ICIS queries on the projects at the time of writing.

In November 2023, then Indonesian President Joko Widodo had said that ExxonMobil is planning to invest up to $15 billion in a petrochemical project and CCS facilities in Indonesia.

Indonesia is heavily reliant on imports of petrochemicals, including polymers, amid limited domestic production.

Its current sole integrated petrochemical complex located in Cilegon, Banten province, is operated by Chandra Asri Petrochemical

ExxonMobil and Indonesia’s state-owned energy company Pertamina had announced plans last May to do preliminary works to develop and build a CCS hub in the Sunda-Asri basins in the Java Sea, in northern coast of Java Island.

A preliminary study by the two companies indicates the basin has the potential to store up to 3 gigatonnes of carbon dioxide (CO2). The project is estimated to require a $2 billion investment.

Thumbnail image: A transport ferry sailing toward the sea port in Merak, on Java Island, from Sumatra island, in Indonesia, on 17 July 2024. (Adriana Adie/NurPhoto/Shutterstock)