PTTEP to build Thailand's first carbon capture, storage project at Arthit gas field by 2026

Thailand's PTT Exploration and Production, or PTTEP, plans to build the country's first carbon capture and storage project at the Arthit offshore gas field and start operations by 2026, the oil and gas exploration company said in a statement June 6.

Carbon capture and storage or CCS is the process of capturing carbon dioxide produced from industrial processes and storing it permanently in reservoirs, which prevents the gas from being released into the atmosphere.

PTTEP said the project was started in 2021, and the feasibility study concluded recently. The project is currently in the preliminary front-end engineering and design (Pre-FEED) stage and is expected to commence operations by 2026. It expects the project to result in CO2 emissions reduction of more than 500,000 mt/year, according to the company's latest sustainability report.

In April, PTTEP teamed up with Japan's INPEX Corp and JGC Holdings Corp to jointly study and develop a CCS project in Thailand. In June, PTTEP signed a memorandum of understanding (MoU) with PTT Group for researching a CCS hub in PTT's operations in Rayong and Chonburi.

Upstream companies, including Asian national oil companies, are looking at ways to lower the carbon intensity of oil and gas production, and several projects are relying on the successful development of carbon capture technologies to receive approvals to proceed or get financing.