Conclusions and recommendations
The results of this study suggest that, depending on any future carbon price and fiscal policies, there is significant potential for transport and injection of CO2 emitted from natural gas field developments in South-East Asia. A significant number of projects are likely to be viable with a carbon price up to US$20 per tonne in real terms ignoring the effects of the fiscal terms that operate across the region and up to US$60 per tonne in real terms assuming that the fiscal terms that apply to gas field developments also apply to CO2 transport and injection.
However, this study is based on limited high-level data and therefore the findings are only broadly indicative. More detailed project-specific studies are required. In addition, realising the potential for CO2 sequestration requires more work in establishing the economic, fiscal and regulatory environment in which such projects could be developed.
We recommend further study based on more specific data on actual gas field developments and potential storage sites, particularly depleted or depleting fields for which data is plentiful. Depending on the circumstances, this might involve a study of enhanced oil or gas recovery in addition to CO2 storage. In our view, such a study would first require obtaining the cooperation of oil and gas companies in the region and then working closely with them. The study is likely to proceed in stages. First it would involve contacting companies at a high level to gauge their level of interest in collaborating in such a study. Then it would involve negotiating agreements with interested companies to determine the terms of reference before the study begins. Finally, it would involve preparing the study with the close cooperation of the interested companies.