Nissho, Mitsubishi Heavy in Indonesian CO2 project
Date: 01-Jul-02
Country: JAPAN
The two firms have agreed with an oil and gas research centre affiliated with Indonesia's Ministry of Mining and Energy to start a feasibility study in September with a view to building a gas-collection plant in Kalimantan, on Borneo island, he said.
The total cost, including a construction, was estimated at 100 billion yen ($836.4 million).
The plant would be built by the end of 2004 with the aim of starting the operation by 2006, the spokesman said.
The partners plan to recover 30,000 tonnes of CO2 per day and to sell the gas to operators of oil fields in the Badak region.
Injecting CO2 into oil fields can increase production by some 50 percent. During the injection process, gas is absorbed into the ground, enabling CO2 emissions to be reduced.
The spokesman said the partners would take advantage of a new technology developed jointly by Mitsubishi Heavy and Japan's Kansai Electric Power Co Inc .
The technology to inject CO2 into oil fields is already commercialised in the United States, where about 22 million tonnes of CO2 are recovered annually.
Nissho Iwai's shares ended the morning session up one yen or 1.22 percent at 83 yen while shares of Mitsubishi Heavy were down two yen or 0.56 percent at 356 yen.
The Nikkei average was up 2.34 percent.