Petronas signs MoU with Sinopec to explore energy value chain opportunities

Malaysian national energy company Petronas has entered into a memorandum of understanding (MoU) with China’s Sinopec to explore opportunities across the energy value chain, the company announced on May 30. The collaboration aims to foster economic growth and development in the Asia Pacific region while accelerating the transition to a low-carbon economy.

The partnership will focus on sustainable growth in areas such as commodity and specialty chemicals, crude oil and LNG trading, lubricants, and digital solutions. Additionally, it will drive decarbonization efforts across various industries, including transportation, shipping, manufacturing, aviation, and power, enabling these sectors to reduce their carbon footprint while remaining competitive.

Petronas and Sinopec have maintained a partnership since 1997, initially established through a production sharing contract in South Sudan for exploration and production work. Over the years, this collaboration has expanded across the gas and downstream sectors, including the delivery of LNG and petrochemical products to support Sinopec's gas terminal expansion plan and sourcing for a wide range of applications in other industries.

Last month, Petronas signed a joint study agreement with Japan’s Jera to evaluate the development of a carbon capture and storage (CCS) value chain. Under this agreement, the parties will collaborate on a feasibility study encompassing the entire CCS value chain. This includes evaluating the feasibility of separating and capturing CO2 emissions from Jera's operations in Japan, exploring transportation methods for cross-border CO2 transport, and assessing storage options in Malaysian gas fields.