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Despite a slow start, the Asia-Pacific region holds 60% of the future CCUS abatement potential.

By Shardul Sharma and Joseph Murphy



The demand for oil and gas in Asia is expected to grow significantly in coming years, carving out a key role for carbon capture utilisation and storage (CCS/CCUS) in the region’s energy transition roadmap.

According to research recently published by McKinsey, the potential for CCUS is concentrated in the Asia-Pacific region. The region will account for 60% of future global CCUS capacity – over 3 gigatons/year – by 2050, according to the report. Over the last two years, a number of projects and feasibility studies have been announced across the region. Here is a snapshot at some of the most promising developments in the Asian CCUS space.


Australian energy companies Santos and Beach Energy are developing the Moomba CCS project in South Australia. The project reached 40% completion at the end of last year and is on track for first injection of CO2 in 2024. The project will store 1.7 MTPA of CO2, and there is an estimated 20 MTPA of overall storage capacity across the Cooper basin.

Santos is also developing the Bayu-Undan CCS project that could potentially store up to 10 MTPA of CO2, equivalent to about 1.5% of Australia’s carbon emissions each year. The project entered the front-end engineering and design phase last year.

Bayu-Undan supports the development of an emissions reduction hub in Darwin, with the CO2 due to be injected at the soon-to-be-depleted Bayu-Undan gas field offshore Timor Leste.

Santos has been awarded permits to undertake evaluation and appraisal work for the potential storage of CO2 in the offshore Carnarvon and Bonaparte basins, off the coast of Western Australia.

The Australian CCS sector is attracting global players as well. Japan Organisation for Metals and Energy Security (JOGMEC) and Inpex have signed an agreement to study the feasibility of developing a CCS project in the Bonaparte basin.

The joint research agreement will support Inpex as it assesses the feasibility of using greenhouse gas permit G-7-AP for long-term geological storage of CO2. Inpex is the operator for the Bonaparte CCS joint venture and is assessing the project’s potential.

Australia's DeepC Store, France's TechnipEnergies and Japan's Mitsui O.S.K. Lines have teamed up to develop the first floating offshore CCS hub in the Asia-Pacific region, off the coast of northwest Australia.

The CStore1 project will inject between 1.5 and 7.5 MTPA of CO2 into storage that has been received from industrial sources in Australia and potentially elsewhere in the Asia-Pacific region. The three companies have signed a letter of intent on engineering, procurement and construction work.

Technip Energies will deploy its offshore C-Hub technology, while Mitsui will provide operation and maintenance services. DeepC serves as project developer.

Australia’s leading oil and gas association APPEA has backed a new study on CCUS in Western Australia. The study was last year commissioned by the Western Australian LNG Jobs Taskforce, supported by Appea members BP, Chevron, Eni, Santos, Shell, and Woodside.

“CCUS and CCS have key roles in lowering the carbon intensity of gas production and in supporting the development of a blue hydrogen industry here in Western Australia, a key enabler to a viable hydrogen industry,” APPEA Western Australia director Claire Wilkinson said last year.


Malaysia is also exploring CCS, with state-owned Petronas leading the way. Petronas Carigali, a wholly-owned subsidiary of Petronas, in November reached the final investment decision (FID) on the development of its Kasawari CCS project offshore Sarawak.

The FID was approved in October, followed by the award of the engineering, procurement, construction, installation and commissioning contract to Malaysia Marine and Heavy Engineering. The project, located at Block SK316 about 200 km off Bintulu, is expected to reduce CO2-equivalent emissions from flaring by 3.3 MTPA.

Petronas is involved in a number of CCS feasibility studies as well.

Japan Petroleum Exploration (JAPEX) and Petronas last year agreed to conduct a joint study for CCS in the country. According to the memorandum of understanding, the pair will conduct an investigation of suitable sites for CO2 storage and technical evaluations in Malaysia for approximately 20 months.

They will also study methods to capture and transport CO2 from the Petronas LNG complex located at Bintulu and from outside Malaysia as a future possibility. This study will include evaluations of storage capacity and technologies such as optimal storage methods, optimal capture and transportation methods including estimation of emissions and capture volumes, and monitoring method of CO2 stored underground.

Petronas has also teamed up with Korea’s POSCO Engineering and Construction to explore opportunities for CCS in the Malaysian market. The company is also working with carbon storage developer Storegga to study the potential for the development of CCS hub and cluster projects in Malaysia.

Inpex in February 2023 signed a joint collaboration agreement with Petroleum Sarawak (Petros) for the potential development of a CCS project in Sarawak, Malaysia. The project will be targeting gas fields with high concentrations of CO2, petrochemical industries, power plants, manufacturing industries and other sources in Sarawak. It will help reduce greenhouse gas emissions in Sarawak and accelerate the decarbonisation of the state’s industries as well as Malaysia as a whole.


In Thailand, state-owned PTTEP is developing the country’s first CCS project at Arthit offshore gas field – a project on track for launch by 2026. Honeywell has been selected as the carbon capture technology provider.

PTTEP is also working with Inpex Corp and JGC Holdings to explore the potential development of a CCS project in Thailand.  The state-owned energy company is aiming to reach net-zero emissions by 2050. One of its key strategic enablers to reduce CO2 emitted from its petroleum production process is the adoption of CCS technology.


In Indonesia, BP is planning to capture emissions from its Tangguh LNG plant for storage in the reservoir. BP expects the project to have a capacity of 4 MTPA of CO2. The $2-3bn project will help ensure the Tangguh LNG plant has minimal emissions by 2026. 


This article was originally published in the latest issue of Global Voice of Gas by IGU (International Gas Union).