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    Petronas, MOL, MISC to develop LCO2 carriers for CCS projects in Malaysia

Summary

The parties have agreed in principle on the key commercial terms to allow progress to the next stage. [Image: Petronas]

by: Shardul Sharma

Posted in:

Asia/Oceania, Top Stories, Topics, Malaysia, News By Country

Petronas, MOL, MISC to develop LCO2 carriers for CCS projects in Malaysia

Petronas CCS Ventures, a unit of Petronas, has signed a term sheet with Mitsui O.S.K Lines (MOL) and MISC for the potential incorporation of a joint venture to invest in developing and monetising liquefied carbon dioxide (LCO2) carriers for carbon capture and storage (CCS) projects in Malaysia, Petronas announced on September 22. The parties have agreed in principle on the key commercial terms to allow progress to the next stage.

Petronas said that the term sheet builds on the February 2022 memorandum of understanding signed with MOL and the four approvals in principle (AiPs) for the conceptual design of the LCO2 carriers in June 2023.

“LCO2 carriers are integral to the CCS value chain to connect customers to carbon capture sites and storage locations. By combining our individual strengths, we will be able to facilitate the development and subsequently materialise the transportation of liquefied COin a safe and sustainable manner,” Petronas CEO of upstream, Datuk Adif Zulkifli, said.

Petronas said that this partnership further reinforces the company’s commitment in establishing Malaysia's potential as a prominent regional hub for CCS.