Malaysia’s national upstream company Petronas Carigali has taken the final investment decision on its Kasawari carbon capture and storage (CCS) — Kasawari phase two — development offshore Sarawak, East Malaysia.

The CCS project, located in Block SK 316 about 200 kilometres offshore Bintulu, is expected to reduce carbon dioxide volumes emitted via flaring by 3.3 million tonnes of CO2 equivalent annually, making it one of the largest offshore CCS projects in the world.

Petronas Carigali’s chief executive Hasliza Othman said: “The FID marks a crucial stage in the progress of CCS solutions.

“This project is expected to become the catalyst in achieving end-to-end CCS capability development within Petronas and the first step in unlocking Malaysia’s potential as a regional CCS solutions hub.”

The operator also confirmed the award of the prize Kasawari CCS engineering, procurement, construction, installation and commissioning contract to Malaysia Marine & Heavy Engineering (MMHE).

MMHE and its engineering partner Perunding Ranhill Worley are expected to move into the detailed design phase in early 2023.

Kasawari phase two centres on a fixed CCS platform — with a 15,000-tonne eight-leg jacket and topsides weighing 14,000 tonnes — that will be installed in a water depth of 108 metres.

This facility will be the world’s largest offshore platform fabricated to capture and store carbon, noted MMHE.

This platform will be bridge-linked to the main central processing platform, with a new 138-kilometre, 16-inch subsea pipeline delivering the compressed CO2 for injection at a depleted reservoir at the M1 field.

A total of about 71 million to 76 million tonnes of CO2 from the Kasawari CCS project will be reinjected into the M1 field over the project life.

“We are honoured and thrilled to be entrusted with this Kasawari CCS project by our long-standing partner Petronas Carigali,” said Pandai Othman, chief executive of MMHE’s parent, MHB.

“As this contract was won based on a FEED competition, it is also a testament to our cost competitiveness in delivering integrated EPCIC solutions to our customers.”

The main Kasawari project is expected to start up in 2023. Phase two, with the related CCS scheme, is scheduled to be operational in late 2025. This second phase will exploit part of the field where the gas has a higher CO2 content.

The giant Kasawari field contains 3.2 trillion cubic feet of recoverable gas reserves.

It seems that Petronas Carigali has been reticent to blow its trumpet on this flagship CCS project, despite the scheme’s green credentials.

The project operator revealed on Tuesday that the final investment decision was approved on 20 October while the EPCIC award to MMHE followed on 3 November although the lead contractor only received approval to tell the world about its award on the 29th of that month.

Kasawari CCS aims to pave the way forward for future decarbonisation plans for Petronas and Malaysia, as well as to support the national energy giant’s progress towards achieving its Net Zero by 2050 goal.

MHB in 2019 won the EPCIC contract for the main Kasawari project and its workscope comprised the Kasawari CPP, wellhead platform and a flare structure together with two bridges linking the CPP to the WHP and the flare structure.

The Kasawari CPP is being fabricated at MMHE's West Yard in Pasir Gudang, Johor, Malaysia and is scheduled to load out in early 2023. The WHP jacket and topsides have been completed and last year were installed on location on Block SK 316.

Updated to include details of MMHE’s workscope.

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