Mitsubishi announced FID for the project in a statement on Friday.
The company participates in the CA2 project through its wholly-owned subsidiary, Diamond Energy Exploration & Production (Brunei Deepwater)or DEEP, which holds 18.75 percent interest in the CA2 project.
As a result of this investment decision, DEEP’s capital is expected to exceed 10 percent of the company’s capital, and therefore DEEP will be designated as the specified subsidiary of the company.
Mitsubishi said the project aims to commence commercial production around 2030, with a planned natural gas production volume of approximately 390 million standard cubic feet per day (MMscf/d), equivalent to approximately 2.9 million tonnes per year during stable production phase.
Moreover, the produced natural gas will be supplied to Brunei LNG, in which Mitsubishi holds a 25 percent interest, and will be delivered as LNG to customers in Japan and other Asian countries, the company said.
Mitsubishi did not provide further details regarding the project or the price tag.
Several reports suggest that Mitsubishi will invest around $260 million in the project, meaning that the development is worth approximately $1.4 billion.
According to the Petronas website, the company has a 45 percent operating stake in Block CA2, consisting of Keratau and Kelidang fields.
On the other hand, Brunei LNG’s export plant in Lumut, one of the world’s oldest LNG export facilities, has a capacity of 6.7 mtpa.
UK-based LNG giant Shell and Mitsubishi each have a 25 percent share in the facility, while the Brunei government holds 50 percent.
This facility mostly ships LNG to Japan and South Korea.
