Petronas, ADNOC, Storegga to explore CCS in Malaysia

Petronas, ADNOC, and Storegga announced on August 20 the signing of a joint study and development agreement (JSDA) to assess the carbon dioxide (CO2) emissions storage capabilities of saline aquifers and the construction of carbon capture and storage (CCS) facilities in the Penyu Basin, offshore Peninsular Malaysia.

The agreement targets at least 5mn tonnes/year of CO2 capture and storage capacity by 2030. Its scope includes a CO2 shipping and logistics study, geophysical and geomechanical modelling, reservoir simulation, and containment research, while exploring the application of advanced technologies, including artificial intelligence (AI), to enhance storage capacity.

Petronas is a member of Malaysia’s National Energy Transition Roadmap (NETR) Committee, which has identified CCS as one of six energy transition levers to enable the country to be sustainable, low-carbon, and resilient. The Malaysian government is set to table a standalone CCUS bill by the end of 2024.

The companies believe that Malaysia's geological abundance of deep saline aquifer reservoirs should allow for the development of large-scale, permanent CO2 storage solutions. The agreement will significantly accelerate regional CCS deployment while strengthening collaboration between the strategic partners.

ADNOC is targeting a carbon capture capacity of 10mn tonnes per year by 2030, equivalent to the emissions released by 2mn internal combustion vehicles.

The JSDA’s activities are provisionally scheduled to begin later this year.