Petronas’ giant Kasawari carbon capture and storage (CCS) project, which the company describes as one of the largest in the world, is moving towards final investment approval in 2022 after the Malaysian energy company launched a call for tenders for front-end engineering and design (FEED).

Petronas has issued a tender from two consortia: Malaysia Marine & Heavy Engineering (MMHE) with its partner Ranhill Worley and South Korea’s Hyundai Heavy Industries, which would team up with Aker Solutions, Upstream reported. The winner of the FEED competition is also expected to see their contract transformed into a comprehensive engineering, procurement, construction, installation and commissioning agreement, according to the publication, citing contracting sources.

Petronas has unveiled plans for the CCS project, which will be able to process around 3.5 million tonnes of carbon dioxide (CO2) per year, to start in 2025. As part of a first phase of development, Kasawari is expected to enter in service in 2023.

In August, Petronas awarded Xodus a feasibility study and conceptual engineering contract for the competing CCS project, which is the second phase of Kasawari’s development offshore Malaysia.

There are few public details on the planned development of the CSC, but IHS Markit, in a June report, assumed the following additional installations required:

• A new CO2 sequestration platform would be installed at Kasawari, probably linked by a bridge to KS CPP-A. The platform would include facilities to recover the hydrocarbons from the permeate stream before the CO2 is compressed / pumped to the desired export pressure.

• A new 135 km carbon steel pipeline would be built to transport CO2 to the M1 field.

• Three new injection wells would be drilled on the M1 field from the existing M1DR-A platform.

Questions swirl around Petronas’ Kasawari CCS

Significantly, if emissions from Malaysia’s high CO2 fields are to be managed, then CCS will be a key enabler, according to IHS Markit. But as Energy Voice reported last month, it remains to be seen whether the economic situation improves and whether Malaysia can remain attractive in the context of an upstream global portfolio.