Petronas announces FID on Kasawari CCS project off Sarawak
SUMMARY
The engineering, procurement, construction, installation and commissioning contract for the project has been awarded to Malaysia Marine and Heavy Engineering.
By Shardul SharmaPOSTED IN:
Petronas Carigali, a wholly-owned subsidiary of state-owned Petronas, has reached the final investment decision (FID) on the development of its Kasawari CO2 sequestration (CCS) project offshore Sarawak, Petronas said on November 29.
The FID was approved on October 20, followed by the award of the engineering, procurement, construction, installation and commissioning contract for the project to Malaysia Marine and Heavy Engineering on November 3.
The CCS project, located in Block SK316 about 200 km off Bintulu, is expected to reduce carbon dioxide volume emitted via flaring by 3.3mn metric tons of CO2-equivalent annually, making it one of the largest offshore CCS projects in the world, Petronas said.
“The project aspires to pave the way forward for future decarbonisation plans for Petronas and Malaysia, as well as to support Petronas’ progress towards achieving its net zero carbon emission (NZCE) by 2050 targets,” the company said.
Petronas earlier this month announced its NZCE 2050 pathway to accelerate and advance groupwide actions and commitment towards achieving net zero future ambitions.
The company’s short-term target for 2024 is to cap its greenhouse gas emissions at 49.5 mtCO₂e for scope 1 and scope 2 emissions in Malaysia. By 2025, the target is to achieve a 50% reduction in methane emissions from the natural gas value chain.
