Page 5 - AsianOil Week 44 2022

AsianOil COMMENTARY AsianOil

Workers at the Shengli
field met with Chinese
President Xi Jinping.

decarbonisation.” tpy of CO2. The company is targeting 3.7mn tpy
Shell also has conventional oil and gas oper- of CO2 storage capacity by 2025, 25mn tpy by
ations in Shell, working alongside PetroChina 2035 and 100mn tpy by 2050.
and CNOOC to develop onshore and offshore CNOOC, meanwhile, signed an MoU with
fields. Among these is the Changbei onshore gas Shell and ExxonMobil in the summer of this
deposit, where Shell works with PetroChina. The year on developing a world-scale offshore
UK oil major is also one of the main suppliers of CCS hub in the southern Guangdong prov-
LNG into China. ince, with a capacity of 10mn tpy. This was
days after the company launched China’s first
Chinese CCS gains momentum offshore CCS demonstration project at the
It has been China’s largest oil and gas companies Enping 15-1 oilfield in the South China Sea,
that have spearheaded CCUS development, with a 1.46mn tonne capacity.
leveraging their funding access and expertise.
CCUS now appears to be gaining traction after Policy progress too
a slow start, ever since Chinese President Xi Jin- These are just some of the various examples of
ping committed the country two years ago to larger-sized CCUS projects taking shape in
peaking its carbon emissions before the end of China. But there has also been progress on the
this decade, and then bringing them to net zero policy front.
by 2060. The next critical step will be to create the China’s central government mentioned large-
right conditions to foster substantial investment scale CCUS projects for the first time in its 14th
in large-scale CCUS. Five-Year Plan, published in March 2021. China’s
Sinopec, which is the country’s largest oil Ministry of Ecology and the Environment also
refiner, launched its first megaton-scale CCUS subsequently announced support, along with
project at the mature Shengli field in the eastern several other ministries, for pilot and demon-
Shandong province in late August, which will be stration projects in free trade zones. CCUS
capable of sequestering 1mn tpy of emissions. was also included in a joint statement by China
The emissions will be captured at Sinopec’s Qilu and the US in April 2021 on addressing climate
refinery and then transported to the storage change.
site via an 80-km pipeline and injected 3-4 km All this came after China’s government
underground, to boost oil recovery. released a roadmap in 2019 on developing 9mn
PetroChina, meanwhile, reported in March tpy of storage capacity by 2025, 20mn tpy by
that it had started construction of a demonstra- 2030, 70mn tpy by 2035, 200mn tpy by 2040 and
tion project at the Songliao oilfield, to store 3mn 800mn tpy by 2050. ™

Week 44 08•November•2022 www. NEWSBASE .com P5