Feasibility Study for CCS Project and Realization of JCM for Arthit Gas Field in Thailand

June 17, 2022 Project

 Mitsui Oil Exploration Co., Ltd. (President/CEO: Hirotaka Hamamoto; hereinafter referred to as, "MOECO") and Mitsui & Co., Ltd. (President/CEO: Kenichi Hori; hereinafter referred to as, "Mitsui") will conduct a feasibility study for a carbon capture and storage (hereinafter referred to as, "CCS") project and Joint Crediting Mechanism (hereinafter referred to as, "JCM")* for the Arthit gas-field development and production project (hereinafter referred to as, "the Arthit project") in Thailand. The project aims to become the first CCS project in Thailand and was adopted on June 17th, 2022 by the Ministry of Economy, Trade and Industry for an infrastructure development feasibility study (JCM feasibility study, CEFIA Japan secretariat services, etc.).  

 The purpose of the survey is to verify the feasibility of a CCS project and the realization of a JCM in relation to carbon dioxide emitted from flare gas discharged during gas production in the Arthit field, in which MOECO's subsidiary, Moeco Thailand Co., Ltd., participates as a joint venture with PTT Exploration and Production Public Company Limited (Operator) and Chevron Thailand Exploration and Production Ltd. The study, which will last until February 2023, will include an assessment of the subsurface storage capacity for carbon dioxide in the Arthit field. The Thai Government has set a target of achieving carbon neutrality by 2050, and through the reduction of greenhouse gas emissions by CCS in the Arthit field and the utilization of JCM, the project aims to contribute to the achievement of carbon neutrality in both Thailand and Japan.

 The CCS/CCUS business offers opportunities to utilize MOECO and Mitsui's strengths, including our knowledge of the upstream oil and gas business and its extensive business networks. It has been positioned as part of the Energy Solutions segment. MOECO and Mitsui will continue to contribute to the creation of an eco-friendly society through the provision of CO2 reduction solutions around the world.

 *A system promoted by the Japanese government aimed at reducing emissions. In countries that have signed JCM partnership agreements with the Japanese government, JCM facilitates the diffusion of advanced low-carbon technologies and services to contribute to their sustainable development and reduce their carbon emissions. The countries then distribute the emission reductions among project members in the form of carbon credits. The JCM partnership document has been signed by 17 countries including Thailand.

Profile of the Arthit Project

Names of mining areas	Block 14A, 15A, 16A (offshore Thailand)
Activity status	In production
Holders of rights	PTT Exploration and Production Public Company Limited (80%, operator) Chevron Thailand Exploration and Production Ltd. (16%) Moeco Thailand Co., Ltd. (4%)

Arthit project complex

Conceptual scheme of CCS