Petronas’ giant Kasawari carbon capture and storage (CCS) project, which the company describes as one of the largest in the world, is progressing towards a final investment approval in 2022 after the Malaysian energy company invited bids for front-end engineering and design (FEED) contracts.
The Malaysian government and state-backed Petronas have made commitments to cut greenhouse gas emissions. However, these goals become particularly challenging when many undeveloped fields with high levels of carbon dioxide (CO2) and hydrogen sulfide need to be tapped to backfill Malaysia’s LNG export complex in the coming years.
Malaysia’s Petronas has delivered its first 'carbon neutral liquefied natural gas (LNG)' cargo from its Bintulu export complex to Japanese utility Shikoku Electric at the Sakaide import terminal in Shikoku Island. Although question marks remain around whether the industry can really make LNG carbon neutral.
Xodus, of Aberdeen, has landed a contract to carry out work for Petronas’ first complete carbon capture and storage (CCS) project, offshore Malaysia.
Malaysia is expected to contribute about 12% or 3.1 billion cubic feet (bcf) of global natural gas production in 2025 from key offshore planned and announced projects that are projected to start operations between 2021 and 2025, according to research from GlobalData.
China has been contesting new Malaysian oil and gas development at the Kasawari field offshore Malaysia since early June with China Coast Guard (CCG) vessels harassing the project. The harassment also coincided with Chinese military planes entering Malaysia’s national airspace.
Petronas MPM reckons there is at least 6 billion barrels of oil equivalent (boe) waiting to be discovered in Malaysia’s deep waters.