McDermott comes on board Malaysia’s first carbon capture and storage project

McDermott has secured an offshore contract from Malaysia Marine and Heavy Engineering (MMHE) for the first carbon capture and storage (CCS) project located offshore Malaysia.

Under the scope of the contract, McDermott will perform transportation and the structural installation of a 138-kilometer pipeline section, a 15,000 metric tonne CCS platform jacket, and bridge connecting to the existing central processing platform for the Kasawari project.

The installation activities will be performed by one of the company’s heavy-lift and pipelay vessels.

Operated by Malaysia’s energy giant Petronas, the Kasawari CCS project, located offshore Sarawak in East Malaysia, is expected to reduce carbon dioxide volume emitted via flaring by 3.3 MtCO₂e per annum.

“Set to become one of the largest offshore CCS projects in the world, the Kasawari CCS award showcases the valuable role we have in supporting our clients through the energy transition,” said Mahesh Swaminathan, McDermott’s Senior Vice President, Subsea and Floating Facilities.

Gas extracted from the Kasawari field will be separated into CO2-rich steam (permeate) and hydrocarbon gas. The hydrocarbon gas is sent to an onshore LNG plant while the permeate is routed to the offshore CCS platform for further CO2 separation and compression.

The CO2 will then be transported to a nearby depleted gas field for storage using submarine pipelines.

Petronas took the final investment decision (FID) for the development of the Kasawari CCS project at the end of 2022, followed by the award of the EPCIC contract to MMHE.

Baker Hughes will supply CO2 compression equipment for the project, while Worley will provide detailed engineering design services. Petra Resources is in charge of the hook-up and commissioning works and the Tokyo-headquartered Kawasaki Heavy Industries will deliver a gas compressor for the project.

CCS platform operations are planned to begin by the end of 2025.