Two Companies Invest US$2 billion to Support Zero Flaring 2030
- Arianti Widya
VIVA – A US$2 billion investment to support Zero Flaring 2030 and decarbonize the value chain of the oil and gas industry in Indonesia was signed by Norinco International and Mirah Green at the Indonesia Net Zero Summit, B20 Investment Forum as part of the G20 Summit 2022.
The agreement was signed by Vice President Director, Norinco International, Wan Xiaobing, and Mirah Green Founder, Kadafi Yahya. It was witnessed by Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan, and Minister of Investment, Bahlil Lahadiala, also the Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), Arsjad Rasjid as Host of B20 in 2022.
The target US$2 billion investment is to support Indonesia to achieve the Zero Flaring 2030 target and also reduce energy imports of Indonesia which will have an impact on the decarbonization of the oil industry.
The investment is also an effort to support the Government of Indonesia to provide energy supply to remote areas and especially to encourage economic development in the regions.
Ilustrasi PLTS Atap.
- istimewa
The agreement was one of 16 important agreements signed during the Net Zero Summit. Some of the Multinational companies that participated in the signing event were Mastercard, Halliburton, Atilium, Terra, Canadian Commercial Corporation, GSM System, Unity Technology, Mitsubishi, Keppel, Fasset Technology, Chevron, USAID, and others.
"The first project of the US$2 billion investment has already begun, with the first phase starting operations in January 2023, and the second phase starting in early 2024," Kadafi remarked.
The First Phase of the First Project will impact carbon emission reduction by Zero Flaring at the location of North Barito District, Central Kalimantan. Furthermore, the Second Phase of the First Project will reduce carbon emissions by decarbonizing several value chains of the oil and gas industry at the location.
The First Project is supported by PT Indonesia Infrastructure Finance (IFF), as part of the International Finance Corporation (IFC), Asian Development Bank (ADB), KWF (Kreditstanlt fur Wiederaufbau), from Germany, SMBC (Sumitomo Mitsui Banking Corporation) and PT Sarana Multi Finance Indonesia (SMI) a state-owned enterprise under the Indonesian Ministry of Finance.
