PTT Exploration and Production (PTTEP) [PTTEP:TB], a subsidiary of Thai state-owned oil and gas producer PTT Group [PTT:TB], plans to put Thailand’s first carbon capture and storage (CCS) project into operation by 2026, as reported by Nikkei Asia on June 8. Through the CCS project, PTTEP intends to sequester carbon dioxide emitted from the Arthit offshore gas field in the Gulf of Thailand and store the emissions below the seafloor. The project is at the preliminary design stage following the recent conclusion of a feasibility study. Two months ago, PTTEP also signed a Memorandum of Understanding (MoU) with Japanese engineering company JGC Holdings [1963:JP] and Japanese oil and gas producer Inpex [1605:JP] to jointly explore the potential development of the CCS project in Thailand.
As Thailand’s largest state-owned enterprise, PTT Group aims to be carbon-neutral by 2050, in line with Thailand’s national climate target. In addition, the country also pledged to achieve net-zero greenhouse gas emissions by 2065. PTT Group sees CCS technology as a crucial method for cutting its carbon emissions in the oil production process and potentially for other hard-to-abate industries. Aside from CCS technologies, the company also looks to expand into other green technologies, such as renewable energy, natural gas power generation, and hydrogen power.