3 Megaprojects Will Be Built in West Papua, Investing Hundreds of Trillions
Indonesian President Joko Widodo (Jokowi) inaugurated the Tangguh Train 3 National Strategic Project (PSN) in Teluk Bintuni Regency, West Papua, on Friday (24/11/2023). On the same occasion, Jokowi also led the groundbreaking procession for the development of three upstream oil and gas megaprojects in West Papua.
The three projects include: construction of Carbon Capture, Utilization and Storage (CCUS) in Ubadari Field, Kramomongga District, Fakfak Regency. Then, downstream Blue Ammonia , as well as the Asap-Kido-Merah (AKM) gas field. The investment value of all these projects reaches hundreds of trillions of Rupiah.
The Indonesian Minister of Energy and Mineral Resources, Arifin Tasrif, revealed that the Ubadari carbon storage project or CCUS will be the leading and first in Indonesia. Quoting information from the Indonesian Ministry of Energy and Mineral Resources on August 29 2022, the total investment for this project is estimated at 3 billion US dollars or IDR 46.7 trillion.
Arifin said that CCUS Ubadari has a carbon dioxide (CO2) storage capacity of up to 1.8 gigatons (Gt). Apart from generating additional gas production, this project will also inject around 30 million tons of CO2 until 2035 into the existing reservoir.
Then, the second project that Jokowi just broke ground on , namely the downstreaming of natural gas into low carbon ammonia with an investment value of 1 billion US dollars or IDR 15.5 trillion. Arifin said that blue ammonia production is planned to reach 875 thousand tons per year. The gas will be used for co-firing power plants and steel factories.
After that, Jokowi also carried out the groundbreaking of the Asap, Kido, Merah (AKM) Gas Field project with a total investment of 3.37 billion US dollars or the equivalent of IDR 52.497 trillion. Arifin said, this project will produce gas reserves ( gross ) of 2,244.45 BSCF and condensate of 5.4 MMSTB.
“These downstream projects represent the resilience or resilience of the Indonesian upstream oil and gas industry in carrying out its duties amidst dynamics and challenges, both global and national,” he told journalists after the inauguration of Tangguh LNG Train 3.