Wedoany.com Report-Sept. 10, PTT Exploration and Production Public Company Limited (PTTEP), Thailand’s national oil and gas company, has reached the final investment decision (FID) on the country’s first carbon capture and storage (CCS) initiative at the Arthit gas field in the Gulf of Thailand. The project is designed to capture and store up to 1 million tonnes of carbon dioxide annually and is expected to begin operations in 2028.

Montri Rawanchaikul, CEO of PTTEP, emphasized the importance of the initiative: “PTTEP strives not only to safeguard the country’s energy security but also to reduce greenhouse gas emissions. CCS is an essential technology, both nationally and globally, complementing other clean energy solutions in addressing climate change.” He also highlighted that the Arthit CCS Project would act as a pilot to advance expertise and drive CCS adoption in Thailand, including the development of the Eastern CCS Hub in the Northern Gulf of Thailand.

The five-year investment is estimated at THB 10 billion, or around $320 million. PTTEP confirmed that the project will not affect natural gas production at the Arthit field. Instead, it will leverage existing infrastructure while also installing additional facilities as required. Storage operations will gradually increase to the full capacity of 1 million tonnes per annum.

According to PTTEP, the Arthit CCS Project has been named a flagship initiative for greenhouse gas reduction under Thailand’s Nationally Determined Contribution (NDC) Action Plan. As such, it is eligible for investment support, including tax incentives. Extensive studies have been carried out in preparation, covering site selection with reservoirs at depths of 1,000–2,000 meters, engineering design, and measurement, monitoring, and verification (MMV) systems.

The decision comes three years after the project was first announced. During this period, PTTEP signed memoranda of understanding (MoUs) with several organizations to assess CCS potential in the Gulf of Thailand. This included a collaboration with Inpex on carbon storage potential in the Northern Gulf, as well as partnerships with Mahidol University and Kasetsart University, both signed in 2023.

In addition, PTTEP recently concluded a farm-in agreement with Valeura Energy, allowing the latter to acquire a 40% interest in blocks G1/65 and G3/65 offshore Thailand. This deal expands Valeura’s gross acreage in the country from 2,623 to 22,757 square kilometers, strengthening cooperation in Thailand’s upstream sector.

Montri noted that the project is expected to contribute significantly to Thailand’s net-zero targets while also enhancing long-term economic competitiveness. By establishing the first CCS project in the Gulf of Thailand, PTTEP aims to cultivate technological expertise and set a foundation for wider adoption across the region.