PTT Exploration & Production (PTTEP) said it will spend $300 million to develop Thailand’s first carbon capture and storage (CCS) project at the Arthit offshore gas field as the state-backed upstream player eyes its net zero greenhouse gas (GHG) emissions target.
The CCS project, expected to store 1 million tonnes of carbon dioxide (CO2), is currently in the preliminary front-end engineering and design (FEED) phase. A final investment decision is expected in late 2023, PTTEP said in its H1 financial results, released yesterday. The CCS facility is planned to start operating by 2026.
Montri Rawanchaikul, chief executive of PTTEP, said that regarding Thailand’s commitment to the UN Climate Change Conference of the Parties (COP26) to achieve carbon neutrality in 2050 and Net Zero GHG Emissions in 2065, PTTEP is determined to take part in managing greenhouse gas (GHG) emissions and tackling global warming issues.
PTTEP plans to carry out more feasibility studies for CCS projects in Thailand. Japanese companies Inpex and JGC are working with the Thai upstream player to explore potential CCS developments.
PTTEP is also collaborating with its parent PTT, a national energy holdings group, and its subsidiaries to establish a “Thailand Carbon Capture Utilisation and Storage (CCUS) Consortium” for the study and adoption of CCUS in the country’s industrial sector.
Montri has said that PTTEP’s next CCS project will be at Sinphuhorm, a national gas condensate production facility in Udon Thani and Knon Kaen provinces, reported the Bangkok Post.