ExxonMobil plans to invest up to $15 billion in a petrochemical project and carbon capture and storage (CCS) facilities in Indonesia set to be the largest in Southeast Asia, President Joko Widodo said in a presidential palace statement on Thursday.
ExxonMobil has recently signed an initial deal with one of its units to explore investment opportunities in a petrochemical project in Indonesia.
Moreover in collaboration with Indonesian state energy company Pertamina, Exxon Mobil has agreed to evaluate investments of $2 billion in CCS facilities. These facilities will utilize two underground basins located in the Java Sea. By capturing and storing carbon dioxide emitted by industries in Indonesia and the surrounding region, the CCS hub has the capacity to store at least 3 gigatons of carbon dioxide.
“These large-scale opportunities could substantially boost industrial growth and decarbonisation in Indonesia, as well as the Asia Pacific region,” said Carole Gall, president of Exxon Mobil Indonesia.
Indonesia aims to use its depleted oil and gas reservoirs for carbon storage. The country is finalizing a regulation that would open up storage schemes for carbon from abroad to be stored in the country.
The agreements were signed during Jokowi’s visit to Washington to meet with U.S. President Joe Biden, ahead of the APEC summit in San Francisco this week.