PETRONAS, ADNOC, and Storegga have formalized a Joint Study and Development Agreement (JSDA) to assess the CO2 storage potential of saline aquifers and to develop Carbon Capture and Storage (CCS) infrastructure in the Penyu Basin, located offshore Peninsular Malaysia.

The agreement targets a significant reduction in carbon emissions by establishing a CO2 capture and storage system capable of sequestering at least 5 million tonnes of CO2 annually by 2030. The scope encompasses a comprehensive study of CO2 shipping and logistics, geophysical and geomechanical modeling, reservoir simulation, and containment research. It also includes the exploration of advanced technologies, such as artificial intelligence (AI), to improve and optimize storage capacity.

PETRONAS, as a key participant in Malaysia’s National Energy Transition Roadmap (NETR) Committee, plays a crucial role in advancing carbon capture and storage (CCS) as one of the six critical energy transition strategies for achieving sustainability, reducing carbon emissions, and enhancing resilience. The Malaysian Government is expected to present a dedicated Carbon Capture, Utilization, and Storage (CCUS) bill by the end of 2024, aiming to solidify the regulatory framework supporting these efforts.

Malaysia’s extensive deep saline aquifer reservoirs present a unique opportunity for developing large-scale, permanent CO2 storage solutions. This agreement is set to substantially accelerate the deployment of carbon capture and storage (CCS) technology in the region, while fostering enhanced collaboration among the strategic partners.

Nora’in Md Salleh, Chief Executive Officer of PETRONAS CCS Solutions Sdn. Bhd. (PCCSS), highlighted that the agreement with ADNOC and Storegga represents a significant step towards enhancing PETRONAS’ capability in developing and de-risking saline aquifers for carbon dioxide storage. By leveraging the expertise and experience of their partners in other regions, PETRONAS aims to establish Malaysia as a key regional hub for Carbon Capture and Storage (CCS) in the Asia Pacific. This partnership aligns with PETRONAS’ broader goal of increasing storage capacity through saline aquifers and demonstrates their commitment to advancing CCS technologies and contributing to national climate targets.

Hanan Balalaa, Senior Vice President for New Energies at ADNOC, emphasized that carbon capture technology is crucial for responsibly cutting carbon emissions and advancing towards ADNOC's Net Zero by 2045 target. ADNOC is dedicated to collaborating with reliable global partners such as PETRONAS and Storegga to develop and utilize global carbon management hubs.

ADNOC aims to achieve a carbon capture capacity of 10 million tonnes per annum (mtpa) by 2030.  Partnering with Storegga is crucial for advancing CCS initiatives in Malaysia, given Storegga's pioneering role in the global development of carbon capture and storage technologies. From its early involvement in the field, Storegga has emerged as a leading player, renowned for its innovative approach and significant contributions to advancing CCS. This collaboration leverages Storegga's expertise and leadership to drive progress and enhance the effectiveness of carbon capture projects in the region.

Tim Stedman, the CEO of Storegga, highlighted the strategic importance of the newly formed partnership in establishing a premier Carbon Capture and Storage (CCS) hub. This initiative is poised to play a pivotal role in accelerating the decarbonization of large-scale industrial operations, underscoring Storegga's commitment to driving sustainable and responsible energy solutions. Leveraging Storegga’s experience from leading CCS regions alongside the expertise of their partners, this collaboration reflects a united commitment to urgently address climate change.