KUALA LUMPUR (Aug 10): Petroliam Nasional Bhd (Petronas) is said to have awarded a conceptual engineering design contract to UK-based energy consultancy Xodus to undertake Petronas’ first complete carbon capture and storage (CCS) project that aims to capture and process carbon dioxide from sour gas fields.

Xodus claimed in a statement on its website that Malaysian national oil company Petronas’ CCS project at the Kasawari gas field, off the coast of Sarawak, will comprise the capture and processing of carbon dioxide from the sour gas field development, from which carbon dioxide will be injected in a depleted gas field.

"This project is a key element of Petronas’ aspiration of achieving net zero carbon emissions by 2050,” said Xodus, which did not specify the value of the contract.

"The work with Petronas was secured as part of Xodus’ contract to provide engineering services for the operator’s Malaysian and international developments. Under the agreement, Xodus is delivering feasibility studies and conceptual design,” Xodus said.

In oil and gas terminology, sour gas refers to natural gas that contains a substantial amount of hydrogen sulfide. 

Simon Allison, Xodus’ regional director for Asia-Pacific, said in the statement that the Petronas contract is a significant step for Petronas and Malaysia, and that the contract aligns with Xodus’ ethos of delivering a responsible energy future.

"The award of this contract is a demonstration of the success of our expansion and recognition of our growing footprint across the Asia-Pacific region.

“CCS will be a key part of a global transition to net zero carbon emissions, and our international experience and expertise will support Petronas in delivering sustainability across future projects,” Allison said.

At the time of writing today, Petronas had not issued a statement in response to Xodus’ statement.