Japan Petroleum Exploration Co., Ltd. (JAPEX), JGC Holdings Corporation (JGC HD,) and Kawasaki Kisen Kaisha, Ltd. (“K” LINE) have agreed and signed the Key Principles Agreement (KPA) with PETRONAS CCS Ventures.
A CCS joint collaboration study was started by PETRONAS and JAPEX in January 2022 and JGC Corporation, a subsidiary of JGC HD. and “K” LINE joined in July of the same year. It successfully assessed the underground storage capacity of CO2, marine transportation from CO2 emission sources, and the most effective CO2 storage scheme forvpermanent storage offshore Malaysia.
Based on the conclusion of the Joint Study, which decided that targeting the depleted oil and gas fields and the associated aquifers, identified offshore Malaysia, will maximize practicality of CO2 storage and feasibility of the earliest commercialisation, the Consortium has agreed to execute the CCS Project Development jointly.
The KPA will start 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. Detailed engineering of the specifications, estimated costs, and business scheme, including infrastructure network of CO2 pipelines from onshore, receiving facilities for liquefied CO2 transported by ships and offshore injection facilities will be carried out. PCCSV and JC will work closely with other Malaysian stakeholders for the development of a CCS hub in Malaysia.
PCCSV and JC will execute the CCS Project Development aiming for the final investment decision on the commercialisation in the mid-2020s and operation start by the end of 2028. The target amount of CO2 injection is to be at least 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, with a view to increasing the amount to more than 10 million tons per year in the early 2030s.
In addition, the JC will continue the joint evaluation aiming to establish a CCS value chain beginning in Japan with JFE Steel Corporation begun in June and will manage the collaboration between the Joint Evaluation and the CCS Project Development.
By executing the KPA for the early commercialisation of the CCS project, JAPEX, JGC HD and “K” LINE aim to contribute for the realisation of a de-carbonised society in Asia targeted by the “Asia Energy Transition Initiative (AETI)”.