Pertamina Collaborates with ADNOC Companies to Work on EBT Projects

    Pertamina cooperates with two companies from the United Arab Emirates (UAE) to develop energy potential and refinery production in Indonesia, namely Masdar which is a leading renewable energy company, and Abu Dhabi National Oil Company (ADNOC).

ADNOC

    This commitment was announced in the presence of President Joko Widodo and President of the United Arab Emirates Mohammed bin Zayed Al Nahyan, during the peak of Business 20 (B20) activities in Nusa Dua, Bali, Monday (Nov 14).

President of the UEA Mohammed bin Zayed Al Nahyan 

with President Joko Widodo 

    The signing of the cooperation commitment was carried out previously some time ago in the UAE. The collaboration between Pertamina through Pertamina Power and New Renewable Energy (PNRE) with Masdar is the development of a Solar Power Plant (PLTS) in the Rokan Block with a cooperation agreement period of 2 years, starting November 12 2022 to 2024. PNRE and Masdar will work together to provide reliable and competitive solutions in the Rokan Phase 2 and Phase 3 PLTS development at the Rokan WK.

Nicke Widyawati

"This strategic collaboration between Pertamina NRE and Masdar will have the potential to accelerate the energy transition," said Pertamina Main Director Nicke Widyawati.

    PLTS Rokan Phase-2 is currently under study with a potential capacity of up to 50-MWp with an estimated total investment value of US$ 47 million. Meanwhile, PLTS

    Rokan Phase-3 with a potential capacity of up to 150 MWp with an estimated total investment value of US$ 140 million. This collaboration does not rule out opportunities for the development of other PLTS within Pertamina.

    Pertamina Power Indonesia (PPI) as the PNRE operator will form a joint venture with Masdar with the composition of ownership in the cooperation, namely PPI as much as 55% and Masdar as 45%. Meanwhile, the off-taker for Solar PV is PT Pertamina Hulu Rokan (PHR) with the benefit of cost savings, a reduction in CO2 footprint of up to 184,000 tons per year, and a reduction in gas consumption of up to 2816 MMSCF per year.

    In addition, PPI and Masdar also exchanged documents related to the Memorandum of Understanding for the Development of Renewable Energy Projects in Indonesia. These projects include developing new Renewable Energy (EBT) projects and sharing information for evaluating and analyzing project feasibility.

Masdar Mubdala Company

    Not only with Masdar, but Pertamina is also collaborating with ADNOC regarding the potential for cooperation in the production of Polyolefins in Indonesia. The agreement period is 1 year (12 November 2022 – 2023). 

    While the potential areas of cooperation are exploring opportunities for participation in cracker projects & new derivatives of the PT Kilang Pertamina International (KPI) Polyolefin project in Indonesia, where ADNOC is interested in utilizing ADNOC technology for Polyolefins, the potential for marketing Polyolefin products by ADNOC and supplying feedstock such as naphtha, LPG and Propane.

Transition Process

    Previously in the discussion session, Nicke also revealed that the energy transition process cannot be achieved in a short time. Requires various kinds of technology, costs, and human resources that are able to meet the standards of meeting the needs of renewable energy. 

    Meanwhile, when the transition process occurs the demand for energy needs also increases, so large-scale energy security must still be maintained. Nicke explained various strategies to face the challenge of alignment between transitions and energy needs.

    To achieve Net Zero Emission (NZE) aspirations while maintaining energy security in Indonesia, PT Pertamina has developed a comprehensive strategy that is delivered through two main pillars and 3 intermediate implementations. The first two main pillars are to focus on decarbonizing business activities, and the second is the development of a green mixed energy business.

    Then, three medium-term strategies that support the plan to drive Net Zero Emissions are first to develop carbon accounting standards that meet national and international standards. The second is stakeholder engagement to fully support the national NZE targets and commitments. This goal is supported by Pertamina's long-term investment strategy.

    The third is Pertamina's environmentally friendly sustainability business initiative which will focus on Biofuels, renewable energy sources, Carbon Capture Systems (CCS/CCUS), batteries as well as electric cars, hydrogen, and carbon businesses. Pertamina has also developed a strategy to support the energy transition by allocating capital costs (CAPEX) for low-emission energy and EBT development.

"We have set a goal to increase the Green Business portion in Pertamina's revenue mix from 5 percent in 2022 to 13 percent in 2030," said Nicke.

    Predictably, revenues from fossil fuels are expected to decline significantly from 86 percent in 2022 to 66 percent in 2040. The objective of this optimistic capital allocation has been coordinated with the Indonesian government and ensured that it is aligned with Indonesia's energy mix targets for renewable energy.

    To offset financing, Pertamina has also implemented a long-term investment strategy consisting of 14 percent Capex for green energy business actions. In addition, Pertamina continues to invest in fossil fuels and petrochemicals as its current main business, in an effort to ensure that the energy transition will not interfere with energy security.

    In addition to the capital investment strategy, Pertamina also collaborates with various parties to accelerate target achievement. Collaboration is needed, in facing the same challenges during the energy transition, especially in technology and financing.

“The cost of technology is still higher than fossil fuels. That's why, we are open to partnerships and collaborations, to drive innovation and lower technology costs, "explained Nicke.

    Collaborative efforts are being intensified because currently the use of technology in new, renewable energy still requires high costs, so the selling price to consumers is still very high. In reducing these operational costs, financing issues are expected to attract more inward investment, both international and domestic, in order to improve global financing mechanisms to support energy transition and decarbonization projects.

 Investor Daily, Page-10, Wednesday, Nov 16, 2022

Pertamina Invites ADNOC Companies to Invest in Indonesia

    PT Pertamina (Persero) is working with two companies from the United Arab Emirates (UAE) to develop new and renewable energy potential, as well as domestic refinery production.

ADNOC

    In the series of B20 Summit activities, Pertamina signed a partnership with the Abu Dhabi National Oil Company (ADNOC) and Masdar a company that focuses on developing renewable energy. 

Masdar Mubdala Company

    With Masdar, Pertamina through Pertamina Power and New Renewable Energy (PNRE) will develop a solar power plant or PLTS in the Rokan Block with a cooperation agreement period of 2 years starting November 12, 2022.

Nicke Widyawati

    The Main Director of Pertamina Nicke Widyawati said that PNRE and Masdar would work together to provide reliable and competitive solutions in the development of PLTS Rokan Phase 2 and Phase 3.

"This strategic collaboration between Pertamina NRE and Masdar will potentially accelerate the energy transition," said Nicke Widyawati.

    PLTS Rokan Phase 2 is currently under study with a potential capacity of up to 50-megawatt peak (MWp) with an estimated investment value of US$47 million. Meanwhile, PLTS Rokan Phase 3 with a potential capacity of 150 MWp has an estimated investment value of US$140 million.

    Later, Pertamina Power Indonesia as the PNRE operator will form a joint venture company with Masdar. The plan is for Pertamina Power Indonesia (PPI) to own 55% of the joint venture, and Masdar to control the remaining 45%.

As for ADNOC, Pertamina will work on cooperation in the production of Polyolefins in Indonesia for 1 year from 12 November 2022. In addition, ADNOC will also explore opportunities for participation in cracker projects and new derivatives from the PT Kilang Pertamina International (KPI) Polyolefin project in Indonesia, because the UAE company is interested in bringing its technology to Indonesia.

Bisnis Indonesia, Page-4, Wednesday, Nov 16, 2022

Pertamina imports LPG from the UAE Oil and Gas Company

 

    PT Pertamina (Persero) signed a cooperation agreement with an oil and gas company from the United Arab Emirates (UEA), Abu Dhabi National Oil Company (ADNOC). Through this cooperation, Pertamina will import LPG from ADNOC, responding to the increasing demand for gas.

ADNOC

    Director of Central Marketing & Commerce of PT Pertamina Patra Niaga Hasto Wibowo said the national demand for LPG in 2022 is estimated to reach 8.3 million tons, then increase to 9.12 million tons in 2023, and increase again to 10.01 million tons in the year 2024. Through cooperation with ADNOC, Pertamina ensures the safety of the national LPG supply which is projected to continue to increase every year.

"Currently, the balance of national LPG import needs reaches 6 million tons per year. Hopefully, with this cooperation Pertamina can expand supply sources and maintain supply stability," said Hasto.

    Hasto explained that this cooperation is one of the procurement strategies for bundling LPG and petrochemical products that are purchased directly from producers. This agreement is also possible to be extended every year, subject to an evaluation before the end of the agreement.

"It is hoped that this collaboration can create long-term collaboration opportunities for LPG and petrochemical products by of course still paying attention to developments in the petrochemical business," said Hasto.

    With this cooperation, the Ambassador of the Republic of Indonesia to UEA Husin Bagis hopes that in the future there will be more collaboration between the two companies.

Surya, Page-7, Wednesday,  March 10, 2021

Pertamina: Imports from UAE keep LPG Supply

 

    PT Pertamina (Persero) has agreed on a sale and purchase agreement for Liquefied Petroleum Gas (LPG) with the Abu Dhabi National Oil Company (Adnoc) for the next four years. This cooperation is to ensure the supply of LPG in Indonesia.

Adnoc

"Currently, the balance of national LPG import needs reaches 6 million tons per year. The hope is that with this cooperation Pertamina can expand supply sources and maintain supply stability, "said Director of Central Marketing & Commerce of PT Pertamina Patra Niaga SH C&T Pertamina Hasto Wibowo.

    Hasto explained that the national demand for LPG is estimated to reach 8.30 million tonnes in 2022. Furthermore, it will increase again to 9.12 million tonnes in 2023, and 10.01 million tonnes in 2024. Hasto said the cooperation agreement is likely to be extended every time. the year. In addition, an evaluation is carried out before the agreement ends.

"This cooperation is one of the procurement strategies for bundling LPG and petrochemical products that are purchased directly from the producer. It is hoped that this cooperation can create long-term collaboration opportunities for LPG and petrochemical products, "said Hasto.

    Senior President International Relations Adnoc Salem Raheb Al Meheiri welcomed the strategic cooperation with Pertamina.

"As one of the largest producers of LPG, crude oil, and petrochemicals in the world, Adnoc guarantees that it will supply products reliably to Indonesia," said Salem.

    The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan explained that the collaboration between Pertamina and Adnoc is one of the seven collaborations between Indonesia and the UAE signed at the Indonesia-Emirates Amazing Week 2021 event.

"These are all first steps to build better relations between the two countries and we will continue to support each other's economic growth in Indonesia and the UAE," said Luhut.

    The seven cooperation agreements in question are mangrove cooperation with the UAE, a memorandum of understanding (MoU) of cooperation in the creative economy, technical arrangements for a world conference on the creative economy, and a joint venture between Dubai Port (DP) World and PT Maspion in the construction of a container port. packing in East Java.

    Other collaborations are the world logistic passport agreement, the MoU between PT Pindad-Caracal, Pertamina-Adnoc, and the Lulu Lease Agreement financing agreement.

Suhail Al Mazrouei

    UAE Minister, Energy, and Infrastructure Suhail Al Mazrouei explained that currently, the governments of the two countries are sitting together to identify investment areas that can not only be worked on together between governments, but also the private sector.

"This is still the first step. Of course, we hope that this cooperation together can boost the economic growth of the two countries," said Suhail.

     Suhail said the LPG and sulfur sales contract will last for four years with an annual contract value of US $ 500 million. Thus, the estimated contract value will be the US $ 2 billion over the next four years.

“The LPG contract together with sulfur is a four-year contract and that's about 500 million dollars a year, so the contract is 2 billion dollars over four years and between 2 billion-2.2 billion US dollars depending on the price. So, it can be renewed, "said Suhail.

Republika, Page-9, Monday,  March 8, 2021

Pertamina and ADNOC LPG Contract Worth IDR 28 Trillion

    PT Pertamina has signed a partnership with an oil company from the United Arab Emirates, Abu Dhabi National Oil Company (ADNOC), for the supply of Liquefied Petroleum Gas (LPG) worth US $ 2 billion or Rp 28 trillion (exchange rate of Rp 14,000 per US dollar).

ADNOC

    Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that this cooperation is one of seven cooperation agreements signed by the Government of Indonesia and the Government of the United Arab Emirates.

"These are all first steps to build better relations between the two countries and we will continue to support each other's economic growth in Indonesia and the United Arab Emirates," Luhut said at the 2021 Indonesia-Emirates Virtual Press Conference.

Suhail Al Mazroui

    The Minister of Energy and Infrastructure of the United Arab Emirates Suhail Al Mazroui explained that the LPG contract is a full years contract for the next four years.

"More than US $ 500 million per year and a total of around US $ 2 billion. This is substantial considering the four-year contract," he said.

    Suhail added that in the future, Indonesia would be a priority for investment activities in the United Arab Emirates. In addition, a number of collaborations that have been agreed upon are the first steps in a series of cooperation between the two countries in the future. 

    However, both parties have not disclosed further about the volume of LPG that will be supplied by ADNOC to Pertamina.

Kontan, Page-13, Monday,  March 8, 2021

Pertamina Ensures Imported LPG Supply

    PT Pertamina (Persero) and Abu Dhabi National Oil Company or ADNOC, the Abu Dhabi oil and gas company, United Arab Emirates, signed an LPG sale and purchase agreement. 

ADNOC

    Director of Central Marketing and Commerce of PT Pertamina Patra Niaga-a subsidiary of Pertamina-Hasto Wibowo said the agreement was to ensure the safety of LPG supply in Indonesia, whose demand is increasing per year.

    According to Pertamina, the demand for LPG is estimated at 8.3 million tons in 2022, then 9.12 million tons in 2023, and an estimated 10 million tons in 2024.

"Currently, Indonesia's demand for LPG imports is 6 million tons per year," he said.

Pertamina Imports LPG and Sulfur from UAE Oil and Gas Companies

 

    PT Pertamina Patra Niaga, the commercial and commercial subholding of PT Pertamina (Persero), has signed a purchase agreement for Liquefied Petroleum Gas / LPG and sulfur with the Abu Dhabi National Oil Company (ADNOC).

ADNOC

    The signing was carried out by Pertamina Vice President Trading and Other Business Patra Niaga Maya Kusmaya with ADNOC Senior President International Relations Salem Raheb Al Meheiri during the Indonesia-Emirates Amazing Week (IAEW) Business Forum last weekend. 

    The signing was witnessed directly by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan and the United Arab Emirates Minister of Energy and Infrastructure Suhail Al Mazroeui.

Suhail Al Mazroeui

    Suhail said that the LPG and sulfur supply contract to Pertamina is valid for four years. The contract value reaches US $ 500 million per year or a total of US $ 2-2.2 billion depending on the price. This contract can also be extended. In fact, the opportunity for other deals is also open.

"We will always be committed and support Indonesia and all its requirements. If we do have supplies, Indonesia will always be a priority, ”he stressed.

    Pertamina's Central Marketing and Commerce Director Patra Niaga Hasto Wibowo said this cooperation ensures the safety of the national LPG supply which is projected to continue to increase every year. In the next year, the national demand for LPG is estimated at 8.3 million tons and will increase to 9.12 million tons in 2023 and then reach 10.01 million tons in 2024.

"Currently, the balance of national LPG import needs reaches 6 million tons per year. We hope that with this cooperation Pertamina can expand supply sources and maintain supply stability," he said.

    This agreement can be extended annually with still being evaluated before the agreement ends. This cooperation is one of the procurement strategies for bundling LPG and petrochemical products that are purchased directly from producers.

"It is hoped that this collaboration can create long-term collaboration opportunities for LPG and petrochemical products by of course still paying attention to developments in the petrochemical business and referring to the national energy mix policy as stated in the RUEN (National Energy General Plan)," added Hasto.

Investor Daily, Page-10, Monday,  March 8, 2021

Pertamina Partners with ADNOC to Ensure LPG Supply

 

    Pertamina signed the LPG and Sulfur Sales Confirmation Agreement which ensures Pertamina gets a supply of LPG and Sulfur from the Abu Dhabi National Oil Company (ADNOC). 

    The signing was carried out by Vice President Trading & Other Business Sub Holding Commercial & Trading (SH C&T) PT Pertamina (Persero), Maya Kusmaya with ADNOC Senior President International Relations, Salem Al Meheiri in the Indonesia Business Forum - Emirates Amazing Week (IAEW) activity and witnessed directly by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan and the Minister of Energy and Infrastructure of the United Arab Emirates (PEA), Suhail Al Mazroeui.

    National LPG demand in 2022 is estimated to reach 8.30 million tons, increasing to 9.12 million tons in 2023, and 10.01 million tons in 2024. Director of Central Marketing and Commerce PT Pertamina Patra Niaga, SH C and T PT Pertamina (Persero), On the same occasion, Hasto Wibowo said that this collaboration ensures the safety of the national LPG supply which is projected to continue to increase every year.

"Currently, the balance of national LPG import needs reaches 6 million tons per year. We hope that with this cooperation Pertamina can expand supply sources and maintain supply stability," said Hasto.

    Hasto added, it is possible for this agreement to be extended every year, while still being evaluated before the agreement ends.

"This collaboration is one of the procurement strategies for bundling LPG and petrochemical products that are purchased directly from the producer. It is hoped that this collaboration can create long-term collaboration opportunities for LPG and petrochemical products by of course still paying attention to developments in the petrochemical business and referring to the national energy mix policy as stated in the RUEN, "added Hasto.

ADNOC

    Meanwhile, ADNOC Senior President International Relations, Salem Raheb Al Meheiri, welcomed the strategic partnership with Pertamina.

"As one of the largest producers of LPG, crude oil, and petrochemicals in the world, ADNOC guarantees that it will supply products reliably to Indonesia," he explained.

    The Indonesian Ambassador to PEA, Husin Bagis also positively welcomed the signing by Pertamina and ADNOC.

"From the Embassy of the Republic of Indonesia, we hope that the realization of this cooperation in the field of LPG and Sulfur supply can open up opportunities for other collaborations such as petrochemicals and other downstream industries in the future," he concluded.

Duta Masyarakat, Page-6, Monday,  March 8, 2021