Construction Of World's Largest Offshore CCS Project Underway

Construction Of World's Largest Offshore CCS Project Underway
Petronas Carigali has awarded a contract to undertake the EPCIC services for the world's largest offshore CCS project off the coast of Malaysia.

Malaysia Marine and Heavy Engineering has secured a contract from Petronas Carigali to undertake the EPCIC services for the Kasawari CCS project off the coast of Sarawak, Malaysia.

MMHE was awarded the Front-End Engineering Design contract in a FEED competition mode for this project early this year.

The EPCIC contract includes the construction of a 14,000-metric ton topside, a 15,000-ton eight-legged jacket of Kasawari CCS platform, and a bridge linking to the Kasawari Central Processing Platform. Upon completion, the platform will be installed some 125 miles offshore from Petronas LNG Complex in Bintulu, Sarawak.

Once completed, the Kasawari CCS project will be the largest offshore CCS project in the world by volume of CO2 captured, with the ability to capture up to 3.3 million tons per annum of CO2. A total of about 71 to 76 million tons of CO2 from the Kasawari CCS project will be reinjected into the M1 field via pipeline, which is some 85 miles from the platform.

Additionally, this facility will also be the world’s largest offshore platform fabricated to capture and store carbon. The Kasawari CCS project, the first-ever CCS project in Malaysia, is scheduled to start by the end of 2025 and will be part of the overall Kasawari Gas Development Project.

In 2019, MMHE was awarded a contract from Petronas to undertake the EPCIC works for the Kasawari Gas Development project phase one, which comprises the Kasawari CPP, wellhead platform, and a flare structure together with two bridges linking the CPP, WHP, and the flare structure.

Kasawari CPP is currently being constructed and is scheduled to loadout in early 2023, while the Kawasari WHP jacket and topside have been completed and installed at the site location in 2021. The Kasawari field development is operated by Petronas Carigali, the operator of SK316 Block.

“We are honored and thrilled to be entrusted with this Kasawari CCS project by our long-standing partner, PCSB. This contract award demonstrates PCSB’s continued confidence in our capability to produce the desired results. As this contract was won based on a FEED competition, it is also a testament to our cost competitiveness in delivering integrated EPCIC solutions to our customers.”

“The award of this contract has increased the order book of MHB to RM6.6 billion, one of the highest ever in our history which signifies the recovery of the oil and gas industry after a long slowdown 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. MHB is proud to be supporting PETRONAS as we embark on our journey in this CCS segment through this collaborative partnership.”

“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.”

“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 decarbonization projects and energy transition,” Pandai Othman, Managing Director and CEO of Malaysia Marine and Heavy Engineering Holdings, said.

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