Japan, Petronas to develop offshore Malaysia CCS project
Three Japanese companies - Japan Petroleum Exploration Co. (JAPEX), JGC Holdings Corporation (JGC), and Kawasaki Kisen Kaisha (K Line) - have signed an agreement with Petronas to jointly develop the carbon capture and storage (CCS) project offshore Malaysia by the end of 2028, the Japanese companies announced on November 20 in a joint statement.
The CCS joint collaboration study was commenced by Petronas and Japex in January 2022 and JGC Corporation and K Line joined in July of the same year. The study has successfully assessed the underground storage capacity of CO2, marine transportation from CO2 emission sources, and the CO2 storage scheme for the purpose of permanent storage in offshore Malaysia.
According to the agreement, the companies will commence the specific preparatory works with a view of beginning the front-end engineering design in 2024 and the subsequent construction works, aiming to inject and store CO2 from Malaysia and Japan at the end of 2028.
Petronas CCS Ventures, a unit of Petronas, and the three Japanese companies will work closely with other Malaysian stakeholders for the development of the CCS hub in Malaysia.
The partners will execute the CCS project development aiming for the final investment decision on the commercialisation in the mid-2020s and the operation commencement by the end of 2028. The target amount of CO2 injection is to be at least about 2mn tonnes/year at the beginning of the project, including that from Malaysia and Japan, and 5mn tonnes/year by 2030, with a view to increasing the amount to more than 10mn tonnes/year in the early 2030s.