A development agreement has been signed between Petronas, TotalEnergies Carbon Neutrality Ventures (TotalEnergies) and Mitsui & Co (Mitsui) which will see the group establishing a carbon capture and storage project located in Malaysia.
Under the agreement, the trio will cover all parts of CCS development, including the evaluation of maturing depleted field and saline aquifers for storage and identifying potential customers, in addition to establishing commercial and legal frameworks.
The recent development agreement builds on initiatives outlined in a Memorandum of Understanding signed by the trio in 2022.
“Petronas is proud to collaborate with forward-looking partners such as TotalEnergies and Mitsui in developing solutions through CCS to move us closer towards a lower-carbon future,” said Tan Sri Tengku Muhammad Taufik, president and Group CEO, Petronas. “The strategic partnership demonstrates Petronas’ commitment to position Malaysia as a regional CCS hub to capture opportunities in the energy transition with a focus on reducing the carbon footprint of our operations to continue delivering the energy needs of today.”
“TotalEnergies is pleased to join forces with Petronas and Mitsui on a carbon storage hub in Malaysia to support decarbonization in Asia,” commented Patrick Pouyanné, chairman and CEO, TotalEnergies. “We will bring to the partnership our strong CCS expertise, anchored in Europe with a first integrated project in Norway due to start next year and several other projects that will contribute to meeting our carbon storage capacity target of 10 million tons per year by 2030.”
Toru Matsui, representative director and senior executive managing officer of Mitsui, added “CCS is based on existing technologies and seen as an affordable solution to decarbonize the hard-to-abate emitters. Mitsui will utilize its expertise in the oil and gas upstream activities and extensive business networks to jointly work with Petronas and TotalEnergies to develop a CCS value chain project in Malaysia. Through the development of CCS business globally, Mitsui will contribute to creating an eco-friendly society.”