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17 January 2024

Daily Newsletter

17 January 2024

McDermott wins contract for Kasawari CCS project offshore Malaysia 

The carbon capture and storage (CCS) project is expected to have the capacity to abate 3.3 million tonnes of carbon dioxide (CO₂) flaring emissions annually. 

Shivam Mishra January 17 2024

Oil and gas industry services provider McDermott has secured an offshore contract for the Kasawari CCS project in Malaysia. 

Under the terms of the contract, McDermott's responsibilities include the transportation and installation of a 138km pipeline, a 15,000-tonne CCS platform jacket and a bridge that will connect to the existing central processing platform.  

The contract was awarded by Malaysia Marine and Heavy Engineering, which is responsible for the engineering, procurement, construction, installation (EPCI) and commissioning work for the project.  

Operated by Petronas Carigali Sdn Bhd, a wholly owned subsidiary of Malaysian oil and gas company Petronas, the Kasawari CCS project is located in Block SK316 offshore Sarawak in East Malaysia.  

Upon completion, it is expected to have the capacity to abate 3.3 million tonnes of CO₂ flaring emissions annually. 

This makes it one of the world’s largest offshore CCS projects, which forms part of Petronas’ plan to achieve net-zero emissions targets by 2050. 

Installation activities will be carried out by one of McDermott's specialised heavy-lift and pipelay vessels.  

Worley is providing the design and engineering services, and Petra Resources is responsible for the hook-up and commissioning work for the CCS project. 

McDermott senior vice-president of subsea and floating facilities Mahesh Swaminathan said: "Set to become one of the largest offshore CCS projects in the world, the Kasawari CCS award showcases the valuable role we have in supporting our clients through the energy transition.” 

In November 2023, McDermott secured the EPCI contract for Shell’s Manatee project offshore Trinidad and Tobago. 

Polycarbonate Industry Analysis

Global Polycarbonate capacity is poised to see considerable growth over the next five years, potentially increasing from 7.59 mtpa in 2022 to 9.96 mtpa in 2027, registering a total growth of 31%. Around 13 planned and announced Polycarbonate projects are expected to come online in Asia over the upcoming years. Among countries, China is expected to lead Polycarbonate capacity additions by 2027, followed by India.

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