Petronas progresses Southern CCS Hub in Pahang

Petronas CCS Solutions (PCCSS), a subsidiary of Malaysian state energy giant Petronas, has signed a land rental agreement with Kuantan Port Consortium to advance plans for its Southern Carbon Capture and Storage (CCS) hub in Pahang, Petronas announced on July 24.

The hub is set to have its first injection by 2029 and aims to reduce carbon emissions for hard-to-abate industries both locally and internationally.

“This hub, with its abundant storage capacity, also serves to connect all the industrial areas in the west of Peninsular Malaysia and the Asia Pacific that are embarking on decarbonisation,” said PCCSS CEO Nora’in Md Salleh.

Petronas is advancing CCS as a key solution to address emissions from its operations and other industries within the Asia Pacific. Petronas in 2022 announced its net zero carbon emission 2050 pathway to accelerate and advance groupwide actions and commitment towards achieving net zero future ambitions.

As part of its broader CCS initiatives, Petronas is developing the Kasawari CCS project, located offshore Malaysia. This project is operated by Petronas Carigali, another unit of the state energy company. Offshore engineering and construction firm McDermott has been awarded the offshore contract for the Kasawari project, which is expected to reduce carbon dioxide emissions by 3.3mn tonnes of CO2e/year through reduced flaring.