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China’s First Million-Tonne Low-Concentration CCUS Project Starts at Shengli Oilfield

China’s first full-chain million-tonne low-concentration CCUS (carbon capture, utilization and storage) demonstration project has begun construction at Shengli Oilfield. The project is expected to be built and put into operation by the end of 2028, with captured CO2 injected into oil reservoirs through more than 70 injection wells, covering beach-bar sand, turbidite and shale oil reservoirs.

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AI take

The significance here lies less in the capture volume than in the "low-concentration" label: most large CCUS projects target high-purity streams, so tackling dilute flue gas is the harder engineering problem and the one that matters for scaling across industrial emitters. Shengli's use of CO2 for enhanced oil recovery also ties abatement to hydrocarbon output, a model that has drawn scrutiny over whether it delivers net reductions. Whether the project stays on its end-2028 timeline, and how its cost and monitoring data are disclosed, is the open question.

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