JOGMEC, JX, Petronas Testing CCS at Malaysian Gas Fields

Japan Oil, Gas and Metals National Corporation (JOGMEC) has signed an agreement with JX Nippon Oil & Gas Exploration and Petronas to study the development of high CO2 gas fields in Malaysia, utilizing Carbon Capture and Storage (CCS) technology.

"There are a large number of gas fields containing high CO2 concentration in Malaysia which have been discovered but left undeveloped due to technical and economic reasons. Separation, capture and proper storage of CO2 from the produced gas is required to develop such gas fields,"  JOGMEC said Wednesday.

"In view of future commercialization, JOGMEC and JX will conduct the study by fully utilizing their knowledge and experiences to explore the feasibility of the development of such gas fields," it said.

In the study, CO2 produced from the fields is to be separated, captured and injected into suitable storage reservoirs such as mature and depleted gas reservoirs.

JOGMEC plans to establish an environmentally friendly gas development concept by applying CCS technology. The study also plans to look into the future possibility of exporting hydrogen produced from natural gas to Japan. 

"JX and JOGMEC will work together to seek the possibility of establishing new energy value chains," JOGMEC said.

"JOGMEC considers CO2-EOR as one of its core technologies and relating technologies such as CCUS including CCS to be the key technology for environmentally friendly resource development. Through this study, we believe that valuable technical knowledge on resource development under low carbon constraints can be accumulated," JOGMEC said.

"JOGMEC will actively promote oil & gas resource development by Japanese E&P companies, and engage in projects that will tackle climate change issues. Through its activities, JOGMEC is willing to contribute to the realization of low carbon and recycling-oriented society," the company added.

JX said; "If the development of such high CO₂ gas fields is confirmed by the study to be feasible and the parties to the SA agree, JX intends to move forward to the gas production with low environmental impact by CCS technology...JX intends by this study to maintain and strengthen its relationships with Malaysia, and to expand its business in the country while contributing to realize the low carbon emission and recycling-oriented world."

Japan's JX owns an operating interest in Helang and Layang Gas fields offshore Sarawak, Malaysia.