LNG

Petronas, the Malaysian state-owned energy company with oil and gas projects and onshore and offshore LNG production plants, reported quarterly net profits down by a third while expecting its cargo portfolio to increase after LNG Canada comes on stream and overall cargo sales and prices to improve.

McDermott, the US energy and LNG engineering company, has been awarded an offshore contract from Malaysia Marine and Heavy Engineering for the Kasawari (Sarawak Gas Field) carbon-capture and storage (CCS) project located offshore Sarawak in East Malaysia.

Under the scope of the contract, McDermott will perform transportation and the structural installation of a 138-kilometre (85 miles) pipeline section, a 15,000 metric tonne (MT) CCS platform jacket and a bridge connecting to the existing central processing platform.

“Set to become one of the largest offshore CCS projects in the world, the Kasawari CCS award showcases the valuable role we have in supporting our clients through the energy transition,” explained Mahesh Swaminathan, McDermott's Senior Vice President, Subsea and Floating Facilities.

Houston-based McDermott said the installation activities would be performed by one of McDermott's heavy-lift and pipelay vessels.

Flaring reduced

Petronas Carigali, the exploration and production arm of state energy company Petronas, said the Kasawari CCS project when completed was expected to reduce carbon-dioxide volumes emitted via flaring by 3.3MT CO2e per annum.

JX Nippon Oil & Gas Exploration Corp., a participant in Asia-Pacific LNG projects in Malaysia, Indonesia and Papua New Guinea, has also been seeking to acquire interests in several natural gas fields offshore Malaysia with CCS attached.

JX Nippon has operated in Malaysia for over 20 years and hopes to focus on additional development initially of the Helang gas field.

The company is also continuing further study of the BIGST project, a large-scale venture that combines the development of high-CO2 gas fields and CCS, in collaboration with Petronas.

Various other Petronas gas fields are targeted for CCS including Bujang, Inas, Guling, Sepat and Tujoh.

The resources in these fields are in the order of several trillion cubic feet (Tcf) of natural gas.

The BIGST project study reflects the efforts towards a fast-paced development of new Malaysian gas fields using CCS and storage.

JX Nipppon said that adopting the CCS solution along with gas was in line with the strategy of the company, which is part of the Japanese ENEOS Group.