Thai state-controlled upstream firm PTTEP has reached a final investment decision on its carbon capture and storage (CCS) project at the Arthit gas field.
The Arthit CCS project is Thailand’s first CCS initiative and it is designed to capture and store 1mn t/yr of CO2. Operations are expected to begin in 2028, and 10bn baht ($320mn) is being invested into the project.
The firm will use existing infrastructure at the field while constructing additional facilities as needed.
The CCS project will not affect natural gas production at the Arthit field, according to PTTEP. The firm earlier this year signed an amendment to the gas sales agreement to raise the daily contracted quantity of natural gas supplied from Arthit to parent company and trading firm PTT from 280mn ft³/d to 330mn ft³/d from June onwards.
The CCS initiative is one of the country’s flagship projects for greenhouse gas (GHG) emissions reduction under the action plan for its nationally determined contribution (NDC) — climate target — under the Paris agreement.
Thailand intends to reduce its GHG emissions by 30pc from business-as-usual levels by 2030. This could increase to 40pc, depending on access to technology development and transfer, financial resources and support for capacity building. The country aims to achieve carbon neutrality by 2050 and net-zero GHG emissions by 2065.
The government will consider granting investment support such as tax initiatives for the Arthit CCS project, PTTEP said.
PTTEP’s sales of oil and gas in January-June was around 495,000 b/d of oil equivalent (boe/d), up by about 1pc from the same period a year earlier. Its net profit for the first half of the year was about 30bn baht, falling by almost 30pc from 42.66bn baht a year earlier. The drop was a result of the firm’s average selling price falling to $44.85/boe because of a decline in global oil prices, said PTTEP.