PTTEP and Inpex to look into carbon storage potential in Gulf of Thailand

Thailand’s national oil and gas company PTT Exploration and Production (PTTEP) is ready to pool resources with Japan’s oil and gas producer Inpex to undertake a study on carbon storage potential in the Northern Gulf of Thailand under an international collaboration between the Thai Department of Mineral Fuels (DMF) and Japan Organization for Metals and Energy Security (JOGMEC).

Signing ceremony for the joint study agreement; Source: PTTEP

According to PTTEP, this study will lay a foundation for the potential development of a carbon capture and storage (CCS) hub in the Eastern Economic Corridor of Thailand (EEC). Currently, the Thai player is conducting the feasibility study of PTT Group’s Eastern Thailand CCS Hub initiative in the EEC, which aims to reduce CO2 emission from the group’s operational sites in Rayong and Chonburi provinces as well as nearby industrial areas using CCS technology and storage potential in the Gulf of Thailand.

Montri Rawanchaikul, Chief Executive Officer of PTTEP, commented: “PTTEP is pleased to work alongside Inpex in this study. We have unique knowledge in the subsurface of the Gulf of Thailand and experiences from our CCS initiative at the Arthit gas field.

“Combined with Inpex’s international experience in CCS project implementation, we believe the study outcome will equip Thailand with necessary insights and information to outline CCS infrastructure and development plan, especially the CCS hub initiative for the EEC, as CCS is one of the promising pathways that could substantially reduce industry’s carbon emissions and keep the country’s net zero greenhouse gas emissions goals within reach.”

Furthermore, PTTEP is also progressing with the first CCS project in Thailand at the Arthit gas field in the Gulf of Thailand. With the front-end engineering design (FEED) phase now completed, the company expects to start CCS operation at the field in 2027 to reduce 700,000 – 1,000,000 tons of CO2 per year from gas production.

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The outcomes of the CCS study at EEC, Arthit field, and this Northern Gulf of Thailand CCS exploration project are expected to deepen geological insights into the storage capacity and help Thailand meet its net zero greenhouse gas emissions target by 2065.

PTTEP is also working on expanding its hydrocarbon resources, as confirmed by a trifecta of oil and gas discoveries offshore Malaysia in 2023. The Thai player claims to be strategically poised to speed up the development of these consecutive discoveries through a cluster development approach, paving the way for long-term growth in Malaysia.