JAPEX - Japan Petroleum Exploration Co. Ltd.
JAPEX - Japan Petroleum Exploration Co. Ltd.
09/13/2024 | Press release | Distributed by Public on 09/12/2024 23:00
Commission a CCS engineering design work in Sarawak, Malaysia as the “Japanese Advanced CCS Projects” in FY2024
2024.9.13
Japan Petroleum Exploration Co., Ltd.
JGC Holdings Corporation
Kawasaki Kisen Kaisha, Ltd.
JFE Steel Corporation
Mitsubishi Gas Chemical Co., Inc.
Mitsubishi Chemical Corporation
The Chugoku Electric Power Co., Inc.
Nippon Gas Line Co., Ltd.
PETRONAS CCS Ventures Sdn. Bhd.
Japan Petroleum Exploration Co., Ltd. (JAPEX), JGC Holdings Corporation (JGC HD), Kawasaki Kisen Kaisha, Ltd. ("K"LINE), JFE Steel Corporation (JFE Steel), Mitsubishi Gas Chemical Co., Inc. (MGC), Mitsubishi Chemical Corporation (Mitsubishi Chemical), The Chugoku Electric Power Co., Inc. (EnerGia) and Nippon Gas Line Co., Ltd. (NGL) (hereinafter "Eight Japanese Companies") signed a contract with Japan Organization for Metals and Energy Security (JOGMEC) for the commissioning of design work, etc. (hereafter, the "Work") related to the Carbon Capture and Storage (CCS) project to inject and store CO₂emitted from multiple industries in Japan including the Setouchi area in offshore Sarawak, Malaysia, which is one of the public solicitations regarding the Request for Proposal on the "Japanese Advanced CCS Projects" in the fiscal year 2024 (hereinafter the "Public Solicitation").
Eight Japanese Companies that signed the contract will proceed with the Work to examine the equipment and costs required for the separation, collection and liquefaction of CO₂emitted from steelworks, power plant, chemical plant, etc., in Japan. PETRONAS CCS Ventures Sdn. Bhd. (PCCSV) will jointly work with the Eight Japanese Companies (hereinafter "Nine Participating Companies") to examine equipment and costs required for the marine transport to Sarawak (including domestic marine transportation in the Setouchi area) and the injection and storage of the CO₂.
Please refer to the appendix for an outline of the Work, roles of the Nine Participating Companies and profiles of each company.
JAPEX, JGC HD, "K"LINE, and PCCSV have signed the Key Principles Agreement (KPA) regarding the study of commercializing the CCS project on September 22, 2023 (*1) and have signed the Storage Site Agreement with PETROLEUM Sarawak BERHAD the Sarawak state-run energy company and the state's CO₂storage rights manager on February 26, 2024. To implement the injection and storage of CO₂from domestic as well as foreign countries such as Japan, JAPEX, JGC HD, "K"LINE, and PCCSV are investigating the profitability of the CCS project using depleted gas fields off the coast of Sarawak, offshore Malaysia including M3 depleted field as CO₂storage sites by formulating a development plan for the CO₂storage sites including CO₂transportation, onshore terminals and pipelines, and evaluating their technical and commercial feasibility (*2).
In addition, on February 26, 2024, JAPEX, JGC HD, "K"LINE, JFE Steel, EnerGia, and NGL (hereinafter "the Six Companies") have signed a Memorandum of Understanding regarding joint evaluation aiming to establish CCS value chain originated from Japan for the commercialization of the CCS project in Malaysia. The Six Companies are conducting the joint evaluation of required facilities and costs(*3) to establish the CCS value chain, from CO₂separation and capture at JFE Steel's steelworks and EnerGia Group's power plant to marine transportation (including domestic marine transportation in the Setouchi area) of liquefied CO₂to the receiving point(s) in Malaysia. As the joint evaluation progressed, the Six Companies recognized that their direction of business consideration was in line with those of MGC and Mitsubishi Chemical, which were considering decarbonizing their factories. As a result, the Eight Japanese Companies concluded the contract with JOGMEC.
By promoting the Work with the aim to early commercialize the CCS project, the Eight Japanese Companies will contribute towards carbon neutrality in 2050, including the realization of a de-carbonized society in Asia targeted by the "Asia Energy Transition Initiative (AETI)" (*4).
Notes)
*1: Please refer to a joint press JAPEX, JGC HD, and "K" LINE Sign a Key Principles Agreement with PETRONAS for the maturation and development of the CCS Project in Malaysia
*2: Please refer to a joint press JAPEX, JGC, and "K" LINE Sign a Storage Site Agreement with PETRONAS and PETROS for the CCS Project in Malaysia
*3: Please refer to a joint press The Chugoku Electric Power and Nippon Gas Line Participate in the Joint Evaluation to Establish CCS Value Chain Originated from Japan for the CCS Project in Malaysia
*4: The Japanese Government's initiative announced in May 2021, which aims to achieve sustainable economic growth and carbon neutrality simultaneously in Asia.
Please refer the PDF versionfor the outline.
Please note that the information in the news is as of the announcement date and may be subject to change without notice.
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