Economic Potential of DACCS and Global CCS Progress

MALAYSIA Malaysia, in large part through its well-established oil and gas industry, is positioning itself to be a CCS leader in Southeast Asia. At a Global CCS Institute event in April, a representative from Malaysian national oil and gas operator, Petronas, stated that the national vision was to become an offshore storage hub by the end of the decade (2). MPM Senior Vice President, Mohamed Firouz Asnan, publicly said that "sixty per cent of storage capacity will be allocated to Malaysia - for Petronas and our partners - while the remaining 40 per cent will be made available to other users" (3). In the same plan, the President announced the introduction of a carbon pricing mechanism (6). However, little information has been released as to rates and administration. A national climate change legal framework is expected near the end of 2022. CCUS regulations are believed to be under development. INDONESIA Indonesia remains a CCS proponent and appears to be a deployment frontrunner in Southeast Asia. Like Malaysia, the broad vision for Indonesian CCS is delivering project- level abatement, while also opening the opportunity for the country to become a storage facility in the region. The Indonesian Government is progressing policy and regulatory development as foreign oil and gas operators drive projects. PROJECTS More information has been released regarding the Kasawari CCS project, located offshore from Sarawak. Linked to the Kasawari Ph2 Field, the project forms part of a strategy to monetise high CO2 gas resources and part of the organisation's broader objective of achieving net-zero by 2050. The project seeks to capture approximately 4.5 Mtpa CO2, beginning in 2025, transported via pipeline 135 km to a depleted reservoir in the M1 field (2). The second project emerging in Malaysia is the Lang Lebah CCS project. Offshore from Sarawak, Lang Lebah is the largest discovery from PTTEP, Thailand's national oil operator (4). The reservoir is estimated to contain 17 per cent CO2, necessitating CCS (5). POLICY In September 2021, during the release of the 12th Malaysia Plan 2021-2025, the Malaysian Government committed to achieving net-zero by 2050 'at the earliest', with a commitment to a 45 per cent reduction in emissions by 2030, based on 2005 levels (6). The national commitment, in line with the same commitment from Petronas, highlights a necessary role for CCS for the world's fourth-largest liqufied natural gas (LNG) producer (7). PROJECTS In late 2021, bp announced that the Indonesian oil and gas regulator, SKK Migas, had approved the expansion of the Tangguh LNG project and the development of the Vorwata CCUS project (8). The project, slated for completion by 2026 or 2027, will inject up to 4 Mtpa for incremental gas recovery and permanent storage (9). Repsol is planning its first injection at its Sakekamang CCS project by 2027, which is estimated to be able to permanently store 2.5 Mtpa. In May, Pertamina announced it would collaborate with Air Liquide Indonesia to develop CCUS technology at the Balikpapan Refinery Processing Unity, with CO2 utilised or stored in the Kutai Basin (10). Elsewhere, four organisations, Japan Oil, Gas and Metals National Corporation (JOGMEC); Mitsubishi Corporation (MC); Bandung Institute of Technology (ITB); and PT Panca Amara Utama (PAU), have agreed to conduct a joint study on the production of ammonia with CCS. [20] GLOBAL CCS INSTITUTE

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