Petronas picks Xodus for Malaysian offshore carbon capture project

Global energy consultancy Xodus has been awarded a conceptual engineering design contract by Petronas for its first complete carbon capture and storage (CCS) project offshore Malaysia.

The Kasawari CCS project off the coast of Sarawak will comprise the capture and processing of carbon dioxide (CO2) from the sour gas field development, which will then be injected into a depleted gas field.

According to Xodus, this project is a key element of Petronas’ aspiration of achieving net-zero carbon emissions by 2050. 

The company has already participated in all aspects of CCS including designing and operating systems to capture, process, transport, inject and store CO2.

Xodus added that the work with Petronas was secured as part of a contract to provide engineering services for the operator’s Malaysian and international developments. Under the agreement, Xodus is delivering feasibility studies and conceptual design. 

Simon Allison, Xodus’ regional director for the Asia Pacific region, said: “This is a significant step for Petronas and Malaysia and aligns with our own ethos of delivering a responsible energy future. The award of this contract is a demonstration of the success of our expansion and recognition of our growing footprint across the APAC region.

“CCS will be a key part of a global transition to net-zero carbon emissions and our international experience and expertise will support Petronas in delivering sustainability across future projects. We are proud to be working together”.

Petronas’ current plans are to start injecting CO2 at the Kasawari development in 2025 and according to a company report from December 2020, it will be the largest offshore CCS project to date. This is part of a greater strategic plan for CCS across depleted gas fields in Malaysia with a total of 46 trillion cubic feet of storage volume identified.

According to a statement made by Petronas Malaysia Petroleum Management in February, there is an even bigger potential to expand this volume if aquifers and depleted oil fields are considered.

The company made its ambitions clear regarding turning Malaysia into a regional carbon storage hub. Petronas also claimed previously that CCS hubs and clusters will help monetise fields with a high carbon dioxide content.