Navigator and Bumi Armada to Form CO2 Shipping and Injection Company in the UK

Gas shipping company Navigator Holdings has signed a non-binding memorandum of understanding with Bumi Armada Berhad, the Malaysian-based offshore oil services provider, to provide CO2 shipping and injection solutions in the UK via a 50/50 joint venture.

The joint venture company, known as the Bluestreak CO2 Joint Venture, will aim to provide an end-to-end solution for carbon emitters to capture, transport, sequester, and store their CO2 emissions in line with the UK’s Industrial Decarbonisation Strategy.

The new company will focus on providing emitters with no access to pipeline infrastructure with a complete value chain, which will involve shuttle tankers delivering LCO2 to a floating carbon storage and injection unit for its injection into offshore storage aquifers and/or depleted oil and gas reservoirs. The company will then provide full surveillance and management of the permanent storage location.

Navigator and Bumi Armada estimate the market to be over 30 million tonnes of CO2 per year in the UK alone. The announcement said the company’s are already speaking with a number of potential customers and the first shipment of CO2 could take place three years after a final investment decision.

Mads Peter Zacho, Navigator’s CEO Mads Peter Zacho said the the Bluestreak CO2 Joint Venture marks the first shipping partnership into the carbon capture sector in the UK.

“I’m incredibly pleased to have the opportunity to offer an end-to-end solution for customers, particularly those not served by the large “mega-cluster” projects. Bumi Armada is a great partner to be taking this strategic step with, and we are very proud to be playing such a meaningful role in the UK’s decarbonization strategy,” he said.

Navigator and Bumi Armada plan to execute a definitive joint venture agreement by the end of Q4 2023, subject to board approval, regulatory approvals, and other customary closing conditions. The companies said the commercialization of the joint venture is contingent on long-term customer commitments.

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