Shell eyes potential carbon capture and storage hub in Southeast Asia
Oil and gas major Shell has inked a deal to look into carbon transport and storage options in Brunei and Singapore, which could form part of a potential carbon capture and storage (CCS) hub in Southeast Asia.
Shell, whose ambition is to have access to at least 25 million tonnes a year of CCS capacity by 2035 and become a net-zero emissions energy business by 2050, disclosed on Wednesday that Shell Eastern Petroleum has signed a memorandum of understanding (MoU) with Brunei Shell Petroleum (BSP) to explore the feasibility of carbon transport and storage options for Brunei Darussalam and Singapore. The government of Brunei Darussalam and Shell group each own a 50 per cent stake in BSP.
Agnete Johnsgaard-Lewis, the Managing Director of BSP, commented: “We are in a good position to leverage our existing relationships and track records in Brunei and Singapore to enable the development of a potential CCS hub in Southeast Asia.”
As outlined in this deal, both players will evaluate the technical and commercial feasibility of carbon storage options in Brunei Darussalam and carbon transport solutions from Singapore. This will enable cooperation between the two countries in developing relevant policies while complementing efforts undertaken by the countries’ governments to deepen cooperation in the areas of energy and green economy, such as CCS through a deal signed in August this year.
Aw Kah Peng, the Chairman of Shell Companies in Singapore, remarked: “CCS will help reduce CO2 emissions from our own operations, as we transform our manufacturing footprint here into Shell Energy and Chemicals Park Singapore. It also offers a way to reduce emissions from hard-to-decarbonise industries, such as those found on Jurong Island. This will help Singapore cut its carbon footprint as we transition to a lower carbon economy.”
Shell, which is a provider of CO2 capture technologies, highlighted that CCS involves the integration of proven technical elements – CO2 capture, compression and transport, and storage – adding that its shipping business has played “an active role” in the development and construction of “the world’s first vessels specifically designed to carry liquid CO2 derived from CCS.”
In addition, the energy giant has “a proven track record of helping to develop large-scale commercial projects” that involve the full carbon capture and storage value chain. This includes building and operating Quest in Alberta, Canada with more than 7 million tonnes of CO2 stored there since 2015 “under budget and ahead of schedule.”
Shell also partnered with Equinor and TotalEnergies in Norway on the Northern Lights project to transport CO2 from industrial sources by ship to a central receiving hub and then send the CO2 through a pipeline to an offshore store.
When it comes to Shell’s other activities, it is worth noting the oil major recently revealed its 3Q 2022 results, which show higher profits on a year-on-year basis thanks to higher gas prices and increased volumes from deepwater assets.