Oil and gas companies Energean and Shell have signed a memorandum of understanding to explore a decarbonization solution in Egypt involving Shell's LNG plant and Energean's offshore CO2 storage.
The proposed partnership is addressing a major CCS feasibility challenge, which is the ability to connect sizeable carbon emitters to an adequate geological structure, Energean said.
The study will focus on the decarbonization of the Shell LNG terminal in IDKU through the capture and storage of carbon dioxide in a depleted reservoir in the Abu Qir offshore concession operated by Energean.
Future stages of development will permit such a facility to take emissions from other industrial emitters (e.g., fertilizers), Energean said.
Energean said it would build on its experience in designing a carbon capture & storage (CCS) solution in a depleted hydrocarbon field that it has operated for many years, mirroring the process ongoing in Prinos, Greece.
The company said that Egypt had "undoubted CCS potential" due to a series of interlinked factors including well understood depleted gas fields, adjacent to much newer production facilities; an infrastructure, skills, and experience rich zone; demand from global markets and stakeholders for decarbonised molecular energy products.
Nicolas Kacharov, Chief Executive Officer of Energean International and Country Manager Egypt, commented:"CCS in Egypt can only be developed in long term partnerships with industries willing to "green" their products. We are excited to work with Shell as such a credible and committed partner."
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