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Indonesia: Pilot Carbon Capture and Storage Activity in the Natural Gas Processing Sector

Sovereign (Public) Project | 49204-002 Status: Closed

A project preparatory technical assistance (PPTA) was approved to undertake due diligence on technical and safeguard aspects of the project and to provide procurement-related support to the executing agency. These activities were to build on a feasibility study for the pilot, partially supported under TA 8407-INO: Planning a Pilot Carbon Capture and Storage Activity, and which covered technical analysis and site suitability assessment, cost estimates and financial analysis, and a risk analysis. A draft initial environmental examination was also prepared in conjunction with the development of the feasibility study. Additional safeguards, procurement, and technical due diligence is being supported under TA 8714-REG: Promoting Carbon Capture and Storage in the People's Republic of China and Indonesia and a direct charge facility provided by the Carbon Capture and Storage Fund.

Project Details

Project Officer
Cowlin, Shannon C. Southeast Asia Department Request for information
Country
  • Indonesia
Modality
  • Technical Assistance
Sector
  • Energy
 
Project Name Pilot Carbon Capture and Storage Activity in the Natural Gas Processing Sector
Project Number 49204-002
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9189-INO: Pilot Carbon Capture and Storage Activity in the Natural Gas Processing Sector
Carbon Capture and Storage Fund under the Clean Energy Financing Partnership Facility US$ 500,000.00
TA 9189-INO: Pilot Carbon Capture and Storage Activity in the Natural Gas Processing Sector (Supplementary)
Carbon Capture and Storage Fund under the Clean Energy Financing Partnership Facility US$ 1.80 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Energy efficiency and conservation - Energy sector development and institutional reform

Gender Equity and Mainstreaming No gender elements
Description

A project preparatory technical assistance (PPTA) was approved to undertake due diligence on technical and safeguard aspects of the project and to provide procurement-related support to the executing agency. These activities were to build on a feasibility study for the pilot, partially supported under TA 8407-INO: Planning a Pilot Carbon Capture and Storage Activity, and which covered technical analysis and site suitability assessment, cost estimates and financial analysis, and a risk analysis. A draft initial environmental examination was also prepared in conjunction with the development of the feasibility study. Additional safeguards, procurement, and technical due diligence is being supported under TA 8714-REG: Promoting Carbon Capture and Storage in the People's Republic of China and Indonesia and a direct charge facility provided by the Carbon Capture and Storage Fund.

With existing resources, the Asian Development Bank (ADB) has engaged various individual consultants to initiate the due diligence process. An international Carbon Capture and Storage (CCS) expert (3 person-months [PM]) will conduct technical due diligence and provide inputs for environmental and social safeguard due diligence. A social safeguards team (national, 3PM; international, 2PM) will undertake social safeguards due diligence. An environmental safeguards team (national, 2PM; international, 3PM) will review the initial environmental examination, visit the site, and gather inputs from the CCS expert to update the environmental safeguards due diligence and associated documentation. The procurement expert (3PM) will assist in procurement-related concerns and an international drilling and well expert (1PM) will assess the suitability of the identified exploration well for carbon dioxide injection. As these resources are expected to be insufficient to finalize the due diligence (particularly technical, environmental, and procurement), this PPTA is sought to complete the necessary project due diligence and enhance project readiness.

Project Rationale and Linkage to Country/Regional Strategy Persistent dependence on fossil fuels means that carbon capture and storage (CCS) could be central to realizing emission reductions from Indonesia's energy and industrial sectors. Indonesia's geology makes it uniquely suitable for deploying CCS technology, with several depleted oil and gas fields that could serve as suitable subsurface storage sites for carbon dioxide. No CCS projects have yet been deployed in the country.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Provincial and district government agencies, local communities, and customary councils will be consulted. The affected people, if any, will be integrated in the project planning, implementation and monitoring through various ways including public consultation and focus group discussions with communities to get their views and suggestions on the project's potential impacts and mitigation measures.
During Project Implementation Meaningful consultation would be carried out. Views and concerns of affected parties will be elicited with regard to project potential impacts, resettlement, social risk and mitigation measures. The methods to be used for consultations will vary and may include: (i) public consultation meetings and FGDs with potential affected people; (ii) facilitated discussions through community based organizations; (iii) meetings and interviews with government officials both at the national and local levels; and (iv) meetings with informal leaders/groups in the project area.
Business Opportunities
Consulting Services

ADB engaged a consulting firm under Quality and Cost-Based Selection following Guidelines on the Use of Consultants (2013, as amended from time to time). The proceeds of the TA will be disbursed in line with ADB''s Technical Assistance Disbursement Handbook (June 2017, as amended from time to time). Lump-sum payments and output-based contracts will be considered for consulting services under the TA.

The terms of reference for the PPTA consultants were defined based on needs identified through previous ADB support to Indonesia on Carbon Capture Use and Storage, including TA 8407-INO: Planning a Pilot Carbon Capture and Storage Activity, TA 8714-REG: Promoting Carbon Capture and Storage in the People's Republic of China and Indonesia and a direct charge facility provided by the Carbon Capture and Storage Fund. They were updated based on initial findings in the field.

The consultants will undertake a comprehensive review of proposed pilot Carbon Capture and Storage/Carbon Capture Use and Storage projects to assess project risks, identify gaps and make recommendations for project delivery and assurance.

Three individual peer reviewers with expertise in carbon capture and storage, drilling and wells, and carbon dioxide enhanced oil recovery and 15 working day inputs each have been engaged to review the feasibility study for the proposed pilots done by the consulting firm in close cooperation with technical partners.

Responsible ADB Officer Cowlin, Shannon C.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Directorate General of Oil and Gas of the Ministry of Energy and Mineral Resources (MEMR)
Migas Plaza Building Centris
Jl. H.R Rasuna Said Kav. B-5 Central
Jakarta 12910 Indonesia
Timetable
Concept Clearance 30 Sep 2016
Fact Finding -
MRM -
Approval 29 Sep 2016
Last Review Mission -
Last PDS Update 27 Mar 2019

TA 9189-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Sep 2016 10 Nov 2016 10 Nov 2016 30 Sep 2017 31 Dec 2019 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,300,000.00 0.00 0.00 0.00 0.00 2,300,000.00 29 Sep 2016 1,870,966.31

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Drilling and Wells Expert Individual - Consulting Closed 07 Dec 2018 03 Jan 2019
Carbon Dioxide Enhanced Oil Recovery Expert Individual - Consulting Closed 07 Dec 2018 03 Jan 2019
Carbon Capture and Storage Expert for Project Due Diligence Individual - Consulting Closed 07 Dec 2018 03 Jan 2019
Energy Analyst Individual - Consulting Closed 24 Nov 2018 03 Dec 2018
Technical Writer Individual - Consulting Closed 03 Nov 2018 09 Nov 2018
Senior Policy Advisor Individual - Consulting Closed 24 Oct 2018 06 Nov 2018
International Energy Analyst Individual - Consulting Closed 07 Mar 2018 13 Mar 2018
Project Coordinator Individual - Consulting Closed 30 Sep 2017 06 Oct 2017
Pilot Carbon Capture and Storage Activity in the Natural Gas Processing Sector Firm - Consulting Closed 16 Sep 2017 15 Oct 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Preparatory Technical Assistance 9189 06 Apr 2018 BATTELLE MEMORIAL INSTITUTE(UNITED STATES) in association with PT Elnusa Fabrikasi Konstruksi(INDONESIA) DG of Oil & Gas of the Min of Energy & Mineral Res Consulting Services 350,000.00

Procurement Plan

None currently available.