Malaysian state-run giant Petronas is teaming up with Japan’s Mitsui OSK Lines (MOL) to collaborate on the transportation of liquefied carbon dioxide, as part of the carbon capture, utilisation and storage (CCUS) value chain.
Petronas revealed Wednesday it had signed a memorandum of understanding with MOL to jointly explore opportunities in liquefied CO2 transportation for the CCUS value chain in the Asia Pacific and Oceania regions.
It is expected the transport of liquefied CO2 will help connect CCUS sites over long distances where pipelines are not economically viable.
“This collaboration is important as long haul liquefied CO2 transportation plays an essential role in the CCUS value chain,” said Petronas upstream chief executive Adif Zulkifli.
“We are confident that MOL’s strong track record, coupled with its recent acquisition of Larvik Shipping AS which has safely transported CO2 for over 30 years, will position both Petronas and MOL as leaders in the region for long haul transportation of liquefied CO2.”
MOL is already experienced in the transport of liquefied CO2 as one of the few companies in the world qualified to operate liquefied CO2 vessels for foodgrade CO2.
Earlier this month Japan’s Mitsubishi Shipbuilding revealed it had signed a deal with compatriot Sanyu Kisen to build, what it claims will be, the world’s first demonstration test ship to carry liquefied CO2 exclusively for emerging CCUS projects.
Petronas has also been looking to build up its expertise in CCUS, signing a raft of agreements, including last month’s MoU with Japan Petroleum Exploration (Japex) to pursue CCUS opportunities.
It also signed a joint study and collaboration agreement last month with the local Malaysian unit of European supermajor Shell to explore CCS opportunities and project collaborations.
An MoU is also in place with South Korean companies Posco International Corporation and Posco Engineering & Construction to collaborate on potential CCS opportunities, while Petronas has also signed an agreement with Technip Energies to further the commercialisation of carbon capture technologies.
The Malaysian operator is already pursuing a CCS project as part of the second phase of development of its giant Kasawari field.
The Malaysian operator recently issued invitations to bid for the front-end engineering and design work for phase two of Kasawari, which will focus on capturing the field's carbon dioxide and injecting it into a nearby depleted offshore reservoir.
Petronas plans to commence the first injection of CO2 by the end of 2025 and, once operational, the project is expected to reduce CO2 volumes emitted via flaring by a total of 76 million tonnes over expected field life, with an annual average saving of 3.7 million tonnes per annum.
The final investment decision for Kasawari phase two is being targeted for later this year.