KUALA LUMPUR: PETRONAS Carigali Sdn Bhd has reached the final investment decision (FID) for the development of the Kasawari CO2 Sequestration (CCS) project offshore Sarawak.
According to the oil and gas company, the CCS project, located in Block SK316 about 200km off Bintulu, is expected to reduce carbon dioxide volume emitted via flaring by 3.3 MtCO2e annually, making it one of the largest offshore CCS projects in the world.
It said the FID was approved on Oct 20, 2022, followed by the award of the engineering, procurement, construction, installation and commissioning (EPCIC) contract for the project to Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) on Nov 3.
“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 project aspires to pave the way forward for future decarbonisation plans for PETRONAS and Malaysia, as well as to support PETRONAS’ progress towards achieving its Net Zero Carbon Emission (NZCE) by 2050 targets," said PETRONAS Carigali CEO Hasliza Othman.
