<article><p class="lead">Japanese trading house Mitsui and Indonesia's state-owned refiner Pertamina have started a joint feasibility study on carbon capture, utilisation and storage (CCUS), with a target of commercial operations during 2025-29.</p><p>The study follows an initial agreement between Mitsui and Pertamina signed on 6 April. The companies are considering examining Pertamina's depleted oil and gas fields in Indonesia's <a href="https://direct.argusmedia.com/newsandanalysis/article/2243521">Rokan oil block</a> in central Sumatra, including the Duri and Minas oil fields.</p><p>The integrated project aims to build CCUS value chains in Asia-Pacific, including carbon dioxide (CO2) capture and its transportation. The CO2 will come from industry and power sectors in Indonesia, as well as being shipped from outside Indonesia including Japan.</p><p>Indonesia is considering reusing its oil and gas fields that are in production decline. The CCUS project is expected to create a domestic low-carbon businesses, contributing to Indonesia's <a href="https://direct.argusmedia.com/newsandanalysis/article/2281565">net zero emissions goal</a>. The country has set a target to reduce greenhouse gas emissions by 29c by 2030 from 2010 levels and to achieve net zero emissions by 2060 or sooner. </p><p>Pertamina is also exploring <a href="https://direct.argusmedia.com/newsandanalysis/article/2278808">hydrogen and ammonia production</a> from natural gas with CO2 CCS technology, partnering with Japanese upstream firm JX Nippon Oil &amp; Gas Exploration and Japan's state-controlled energy agency Jogmec. </p><p class="bylines">By Maiko Nakashima</p></article>
