Photo: MMHE West yard; Source: Malaysia Marine and Heavy Engineering Holdings Berhad (MHB)

‘World’s largest offshore’ carbon capture project is a go in Malaysia

Malaysia’s energy giant Petronas has taken a final investment decision (FID) to develop a carbon capture and storage (CCS) project off Sarawak. To this end, an engineering, procurement, construction, installation and commissioning (EPCIC) contract has been awarded to Malaysia Marine and Heavy Engineering Holdings Berhad (MHB).

Petronas Carigali (PCSB), a wholly-owned subsidiary of Petronas, confirmed on Tuesday that the FID for the development of its Kasawari CCS project off the coast of Sarawak, which was approved on 20 October 2022, was followed by the award of the EPCIC contract for the project to Malaysia Marine and Heavy Engineering (MMHE), a subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) on 3 November 2022.

Hasliza Othman, PCSB’s Chief Executive Officer, remarked: “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.” 

This project is expected to pave the way forward for future decarbonisation plans for Petronas and Malaysia, supporting the firm’s progress towards its net-zero carbon emission (NZCE) targets by 2050. 

In a separate statement, MHB confirmed the EPCIC award, highlighting that this award comes after the firm secured the front-end engineering design (FEED) contract in a FEED competition mode for this project early this year.

Pandai Othman, Managing Director & Chief Executive Officer of MHB, commented: “The award of this contract has increased the order book of MHB to RM 6.6 billion, one of the highest ever in our history which signifies the recovery of the oil and gas industry after a long slow down period since 2014 and throughout the pandemic era. I would like to congratulate Petronas as the frontier of the world’s largest offshore CCS project which is also going to be the first CCS project in Malaysia.”

Malaysia’s first CCS project coming online in 2025

The EPCIC contract entails the construction of a 14,000-metric tonne (MT) topside, a 15,000-MT 8-legged jacket for the Kasawari CCS platform and a bridge linking to the Kasawari central processing platform (CPP). Upon completion, the platform will be installed in a water depth of 108 metres within the SK316 area, approximately 200 kilometres offshore from Petronas’ LNG complex in Bintulu, Sarawak.

MMHE claims that the Kasawari CCS project will be “the largest offshore CCS project in the world by volume of carbon dioxide captured,” with the ability to capture up to 3.3 million tonnes per annum of CO2. In addition, a total of about 71 to 76 million tonnes of CO2 from the Kasawari CCS project will be reinjected into the M1 field via pipeline, which is approximately 138 km away from the platform.

Moreover, this facility is expected to be “the world’s largest offshore platform fabricated to capture and store carbon.” The Kasawari CCS project is scheduled to come online by the end of 2025 and will be part of the overall Kasawari gas development project.

“Backed by our more than 45-year track record, we are on board with Petronas to build a sustainable portfolio with innovative solutions to produce energy responsibly. With the Kasawari CCS platform, this will support Petronas’ sustainability agenda and drive Petronas’ carbon commitment and GHG emissions target by reducing carbon emissions and zero continuous flaring and venting,” added Pandai Othman.

Regarding the first phase of the Kasawari gas development project, MHB was awarded a contract from PCSB in 2019 to undertake the EPCIC works for this project, comprising the Kasawari CPP, wellhead platform (WHP), and a flare structure together with two bridges linking the CPP to the WHP  and the flare structure.

The company outlined that the Kasawari CPP is currently being fabricated at the MMHE West yard, Pasir Gudang, Johor, and is scheduled for load-out in early 2023, while the Kawasari WHP jacket and topside structure were completed and installed at the site location in 2021.

“This very first step for MHB in the CCS segment will further fortify MHB’s commitment and effort in offering cleaner solutions and supporting our stakeholders’ sustainability mission across future decarbonisation projects and energy transition,” concluded Othman.