A carbon capture, utilisation and storage (CCUS) facility is under construction at China's Yanchang oilfield to support enhanced oil recovery (EOR) at the mature asset. This project is part of broader plans to adopt CCUS technology for reducing carbon emissions and boosting oil recovery.

Project Details and Timeline

The Yancheng oilfield CCUS project, with a total investment of 340 million yuan, was launched in late December. Construction of the carbon dioxide capture facility at the Yanchang-China Coal Yulin Energy & Chemical Industrial Complex is scheduled for completion in October 2026. Located in Yulin city, Shaanxi province, the facility is a key component for EOR and will have a processing capacity of approximately 900,000 tonnes of CO2 per annum.

Technology and Process

The facility will use CO2-rich product gas from the low-temperature methanol wash units at the site's methanol plants as feedstock. This gas will be captured and processed into high-purity CO2. Once complete, the captured CO2 will be transported via dedicated pipelines to three injection sites for use in enhanced oil recovery.

Strategic Objectives

The project aims to recycle and utilise captured CO2, addressing the dual challenge of carbon reduction and efficiency enhancement. It is intended to support the company's transition towards greener, lower-carbon operations and is a key development for the green development of the oilfield.

Contract Awards and Construction Scope

Yanchang Petroleum Pipeline Transportation Company awarded a contract to Zhong Shi Chemical Engineering Construction Company Ltd for the procurement and construction of the carbon capture facility. Zhong Shi won the contract with a bid of 165 million yuan. The workscope includes:

• Construction of a new carbon capture and compression station.
• Design of general layout, transportation, and piping installation.
• Power supply and distribution, automation and control, and communications systems.
• Firefighting, water supply and drainage, HVAC, anti-corrosion, and intelligent systems.

Zhong Shi will be responsible for procuring and constructing all equipment and materials, excluding three feed gas centrifugal compressors. Utilities and auxiliary facilities will rely on existing infrastructure at the industrial complex.

Additional Contracts

Separate contracts have been awarded to Shaanxi Xiyu Non-Destructive Testing Company Ltd for non-destructive testing and to Lantian Project Management Company Ltd for construction supervision.