On Tuesday, a partnership was announced involving Adnoc, Petronas, and Storegga, focusing on advancing carbon capture and storage (CCS) technology in Malaysia. Adnoc (Abu Dhabi National Oil Company) is based in the UAE. Petronas, or Petroliam Nasional Berhad, is a Malaysian state-owned oil and gas company. Storegga is a UK-based company specializing in carbon capture and storage (CCS) technology. The companies signed a Joint Study and Development Agreement (JSDA) to assess the potential for storing carbon dioxide (CO2) in saline aquifers located in the Penyu basin, offshore Peninsular Malaysia.
The main goal of this agreement is to achieve a CO2 capture and storage capacity of at least 5 million tonnes per annum (mtpa) by 2030. The partnership will involve a comprehensive study that includes CO2 shipping and logistics, geophysical and geomechanical modeling, reservoir simulation, and containment research. The use of advanced technologies, including artificial intelligence (AI), will also be explored to enhance storage capabilities.
Nora’in Md Salleh, CEO of Petronas CCS Solutions Sdn. Bhd. (PCCSS), highlighted the strategic importance of this collaboration. She explained that it aligns with Petronas’ ambition to position Malaysia as a regional CCS hub, serving the Asia Pacific region. This initiative reflects Malaysia’s commitment to climate goals and its role in the National Energy Transition Roadmap (NETR), which emphasizes CCS as a key element for a sustainable, low-carbon future.
Petronas is actively involved in the NETR Committee and supports the upcoming CCUS bill expected to be introduced by the Malaysian Government by the end of 2024. The new agreement with Adnoc and Storegga also aims to strengthen bilateral economic ties between Malaysia and the UAE across various sectors.
Hanan Balalaa, Senior Vice President for New Energies at Adnoc, stressed the importance of carbon capture in reducing emissions. Adnoc is committed to reaching its Net Zero target by 2045 and is eager to work with Petronas and Storegga to create effective carbon management hubs. The partnership reflects a shared vision of leveraging regional geological resources to develop substantial, permanent CO2 storage solutions.
Storegga, recognized for its pioneering role in CCS technology, brings valuable experience to the table. Tim Stedman, Storegga’s CEO, emphasized the potential of this partnership to drive large-scale industrial decarbonization and establish a leading CCS hub.
