Three Japanese companies have signed a key principles agreement (KPA) with Petronas for the maturation and development of a carbon capture and storage (CCS) project offshore Malaysia, aiming for commercialization by the end of 2028.
Japan Petroleum Exploration (JAPEX), JGC Holdings Corporation (JGC HD) and Kawasaki Kisen Kaisha (“K” LINE) have agreed and signed the KPA with PETRONAS CCS Ventures (PCCSV) on September 22 to jointly mature and develop the CCS project plan and structure.
Petronas and JAPEX commenced the joint collaboration study in January 2022 and JGC Corporation, a subsidiary of JGC HD. and “K” LINE joined in July of the same year.
The partners have assessed the underground storage capacity of CO2, marine transportation from CO2 emission sources, and the most effective CO2 storage scheme for the purpose of permanent storage offshore Malaysia.
The KPA 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 by the end of 2028.
According to JAPEX, the partners will proceed with the detailed engineering of the specifications, estimated costs, and business scheme, including the infrastructure network of CO2 pipelines from onshore gathering, and receiving facilities for liquefied CO2 transported by ships and offshore injection facilities.
PCCSV and JC plan to work closely with other Malaysian stakeholders for the development of the CCS hub in Malaysia and will execute the CCS Project Development aiming for the final investment decision on the commercialization 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 2 million tons per year at the beginning of the project, including that from Malaysia and Japan, and 5 million tons per year by 2030, to increase the amount to more than 10 million tons per year in the early 2030s.