Thailand’s national oil and gas company, PTT Exploration and Production Public Company Limited (PTTEP), has reached the final investment decision (FID) on a carbon capture and storage project (CCS) at a gas field in the Gulf of Thailand.
PTTEP’s CEO, Montri Rawanchaikul, described the Arthit CCS storage project as Thailand’s first initiative of its kind, designed to capture and store up to 1 million tonnes per annum (mtpa) of CO2. The company expects the CCS technology to play a significant role in advancing the country’s net-zero goals.
The five-year investment is estimated to cost approximately THB 10 billion, or around $320 million. Additionally, the Thai player says the development will not affect natural gas production at its location, the Arthit field.
“PTTEP strives not only to safeguard the country’s energy security but also to reduce greenhouse gas emissions. CCS is an essential technology, both nationally and globally, complementing other clean energy solutions in addressing climate change,” said Montri.
“The Arthit CCS Project will serve as a pilot for cultivating expertise and driving CCS adoption in Thailand, including the Eastern CCS Hub in the Northern Gulf of Thailand, which has potential to make material contribution to the country’s Net Zero target and enhance the nation’s long-term economic competitiveness.”
Alongside leveraging existing infrastructure at the Arthit gas field, the company plans to build and install additional facilities as required. Carbon storage operations are expected to start in 2028, gradually ramping up to the 1-mtpa peak capacity.
The Arthit CCS Project has been named a flagship project for greenhouse gas emissions reduction under Thailand’s Nationally Determined Contribution (NDC) Action Plan. This means it is eligible for investment support, including tax incentives.
As disclosed by the Thai player, extensive studies and assessments have been carried out in preparation for the project. This is said to cover the entire project, from storage site selection with reservoirs at depths of 1,000–2,000 meters, to engineering design, and comprehensive measurement, monitoring, and verification (MMV) programs.
The FID comes three years after plans for the project were first made known . In the meantime, the Thai state player signed memoranda of understanding (MoUs) with various players to conduct studies assessing the potential of CCS in the Gulf of Thailand.
This includes a deal with Inpex to conduct a study on carbon storage potential in the Northern Gulf of Thailand, as well as with Mahidol University and Kasetsart University , all signed last year.
More recently, PTTEP inked a farm-in agreement with Valeura Energy, enabling the latter to obtain a 40% interest in blocks G1/65 and G3/65 offshore Thailand. This will boost Valeura’s gross acreage position in Thailand from 2,623 to 22,757 square kilometers.