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05 Mar 2024

Petronas, Petros and a Japanese Consortium have agreed on the use of a storage site in Malaysia

Petronas, Petros and a Japanese Consortium have agreed on the use of a storage site in Malaysia

In Malaysia, there is an M3 depleted field offshore, located in Sarawak. It was recently announced that a new group, made up of PETRONAS, PETROS and a Japanese Consortium have signed a Storage Site Agreement (SSA) for this area.

The companies have agreed on signing this agreement, because of the benefits the SSA will bring to the project the businesses are looking to focus on. The SSA will enable the feasibility study of the Co2 storage sites, with the first one to be addressed being the M3 depleted field, which is a CCS project. The agreement will also open the door for planning of relevant Co2 storage site development and this will involve onshore terminals and transportation pipelines, plus the assessment of its techno-commercial feasibility.

Whilst the project itself is important, the collaboration that is developing this project is significant itself, as it marks an advancement in the effort that is currently being made for the reduction of greenhouse gas emissions. This reduction is predominantly aimed at Asia Pacific (APAC) region, which includes Malaysia and Japan.

The specific companies which signed the agreement were Petroleum Sarawak Berhad (PETROS), PETRONAS, through their subsidiary, CCS Ventures Sdn Bhd (PETRONAS CCS Ventures). Along with them, Japanese Consortium Parties, comprising of Japan Petroleum Exploration Co. Ltd. (JAPEX). Finally, JGC Holdings Corporation (JGC) and Kawaski Kisen Kaisha, Ltd. (“K” LINE) were the final companies to sign the agreement.

PETROS Senior Vice President, Sarawak Resource Management, Nazrin Banu Shaikh S. Ahmad, commented, “As the Resource Manager for Carbon Capture, Utilisation and Storage (CCUS) in Sarawak, this step forward signifies our commitment as Sarawak’s economic growth engine leveraging on CCUS as an enabler. This is the first project for the industry and the impetus to more low-carbon solution projects. We are pleased to share our commitment to Sarawak with PETRONAS and the Japanese Consortium who are participating with us in this CCUS project.”

PETRONAS CCS Ventures Chief Executive Officer, added, Emry Hisham Yusoff, “This collaboration is not just a strategic move to unlock potential CCS opportunities in Sarawak but necessary in addressing climate change as a collective action in achieving a low-carbon future. By securely storing captured CO2 underground, CCS plays a pivotal role in decarbonising key industries, and it is hoped that this milestone will set an impetus for other CCS initiatives within Malaysia.”

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