Shell Eastern Petroleum has signed a Memorandum of Understanding (MoU) with Brunei Shell Petroleum, under which both parties will evaluate the technical and commercial feasibility of carbon storage options in Brunei and carbon transport solutions from Singapore.
The MoU will also enable cooperation between the two countries in developing relevant policies, said Shell. This MoU complements efforts undertaken by the Government of Brunei and Singapore to deepen cooperation in the areas of energy and green economy, such as CCS1 through an MoU signed in August this year.
“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,” said Agnete Johnsgaard-Lewis, the Managing Director of BSP.
“CCS will help reduce CO2 emissions from our own operations, as we transform our manufacturing footprint here into Shell Energy and Chemicals Park Singapore.” Aw Kah Peng, the Chairman of Shell Companies in Singapore, said, “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’s target is to become a net-zero emissions energy business by 2050 and its ambition is to have access to at least 25 million tonnes a year of CCS capacity by 2035.
The Government of Brunei and Shell group each own a 50% stake in Brunei Shell Petroleum Company.
In June, Shell told Energy Voice that it is upbeat about the opportunities for carbon capture and storage (CCS) in Asia Pacific, as the supermajor explores various potential storage site options across its portfolio in the region, which includes Australia, Malaysia and Brunei.
CCS involves the integration of proven technical elements – CO2 capture, compression and transport, and storage. Shell is a provider of CO2 capture technologies and 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.