Energean, Shell to explore carbon capture + storage in Egypt: London-headquartered hydrocarbon exploration and production outfit Energean has signed an MoU with Shell Egypt to study a proposed carbon capture and storage (CCS) project in Egypt, according to a statement (pdf) released on Thursday.

The details: The two companies will conduct a study to capture CO2 from Shell’s LNG terminal in Idku and store it in a depleted reservoir in the Energean-operated Abu Qir concession. Future iterations of the project could see it expand in scope to capture and store CO2 from other industrial emitters — like fertilizer companies, it adds. Energean will apply its knowledge and experience of getting a CCS project up and running — as it’s currently doing in its concession in Greece’s Prinos, the statement notes.

Energean has big investment plans for Abu Qir: The company plans to invest USD 350 mn in Abu Qir the concession this year, CEO and chairman of Energean International Nicolas Katcharov said at the Egypt Petroleum Show (EGYPS) last week. Katcharov did not elaborate on why the company was directing so much capital into the concession.

This isn’t the first carbon sequestration project in the region we’ve heard about in the past month: The UAE’s Adnoc said last month that it would begin to capture and sequester CO2 from Fertiglobe’s UAE operations into carbonate rocks from 2Q 2023. The company will invest USD 15 bn alongside several other companies in the region to develop the tech that is hoped will permanently mineralize CO2 in rock formations in Fujairah.

And even more is planned for carbon capture and utilization (CCU): KSA’s oil giant Aramco and mining company Ma’aden agreed to build sizable CCU facilities last November at COP27, and Omani state-owned energy investment company OQ signed an agreement last month with the Oman India Fertiliser Company (Omifco) to explore including carbon capture tech at its Sur ammonia-urea fertilizer production plant.

ALSO- Egyptian firms signed two agreements that could accelerate decarbonization in the country’s oil and gas sector on the sidelines of EGYPS last week. According to a statement from the Egyptian Oil Ministry:

• The Egyptian Natural Gas Holding Company (EGAS) and Shell will explore the feasibility of producing sustainable biofuels and low-carbon fuel from agricultural waste.
• Norways’ DNV Group will support Egyptian contractor Petrojet’s participation in green hydrogen production plants under an agreement, the details of which were not disclosed.