BP, Chubu signs MoU to evaluate CO2 storage in Tangguh

BP, the operator of Tangguh LNG, and Japan's Chubu Electric Power have signed a memorandum of understanding (MoU) to study the feasibility of an international carbon capture, utilisation, and storage (CCUS) value chain from Japan, using CO2 storage at the Tangguh field in Indonesia, the companies announced on September 11.

Under the terms of the agreement, the two companies will assess the feasibility of CO2 capture, aggregation, and liquefaction at Nagoya Port for export with transport via CO2 shipping for injection and CO2 storage in a geological store within a CO2 storage hub at Tangguh.

Tangguh is the largest gas producer in Indonesia, accounting for approximately 20% of the country's natural gas production. The Tangguh CCUS project operated by BP received approval from the government of Indonesia in 2021 and is currently undergoing front-end engineering and design (FEED) work. The project is expected to be sanctioned in the near future.

Holding about 1.8 GtCO2 in ultimate storage capacity, Tangguh is well-positioned to become the country's first CCS hub for domestic and international emitters, the companies said. The Port of Nagoya is the largest port in Japan in terms of cargo volume, accounting for 3% of Japan's total CO2 emissions. The port has set a target to reduce its emissions by 46% by fiscal year (FY) 2030 compared to FY2013.