Asia-Pacific (APAC) is projected to become the world’s largest CO₂ shipping market, according to a new report from global energy consultancy Xodus, produced in partnership with Subsea7.
The report, Forecasting the APAC CCUS Infrastructure, estimates that by 2055 the region will require over 90 storage sites, around 8,000 km of pipelines, and nearly 80 specialist vessels to meet sequestration needs.
In Japan and Korea—nations with limited oil and gas production but expected to lead CCUS demand—storage requirements may necessitate an offshore infrastructure on par with north‑west Australia’s gas sector.
Linking CCUS projects to LNG assets could reduce costs by 10–15%, effectively shortening shipping distances by over 3,000 km.
Simon Allison, Vice President APAC at Xodus, stated that CCUS is a proven and immediate solution for emissions reduction in hard‑to‑abate industries, and that the region’s extensive emissions footprint and CO₂ reinjection experience position APAC to become a global CCUS hub.
Unlike Europe, APAC’s CCUS deployment will initially rely heavily on international emitters and long‑distance shipping, though costs are expected to fall as proximity-based storage facilities and market entrants increase.
Olivier Mette, Global Advisory Director at Xodus, noted the report spans ten APAC countries between 2035 and 2055, highlighting challenges like emitters located more than 5,000 km from storage.
He emphasized that scaling infrastructure and regulatory collaboration will be critical to unlocking APAC’s CCUS potential.
By 2055, Xodus forecasts demand for nearly 80 CO₂ carriers—about 20% of Asia’s current LNG fleet—and estimates that building six carriers per year over 15 years is feasible.
Xodus, with over 15 years’ experience and more than 50 CCUS projects, advises industry, governments, and financiers across feasibility and operations in the oil & gas, renewable, and marine energy sectors.
Xodus is a global energy consultancy founded in 2005 and headquartered in Aberdeen, UK. With offices across the UK, UAE, Australia, and Asia-Pacific, the firm offers advisory, engineering, and environmental services across the energy spectrum—including oil & gas, offshore wind, hydrogen, marine energy, and CCUS.
Subsea7 is a global leader in offshore engineering and construction, focusing on subsea oil & gas, carbon capture and storage (CCS), renewable energy, and electrification.