KUALA LUMPUR (Aug 22): Rystad Energy said Petroliam Nasional Bhd (Petronas) aims to establish a notable presence in the carbon capture, utilisation and storage (CCUS) market.
The Malaysian national oil company (NOC) announced ambitious plans to build the world's largest dedicated facility by 2025, actively pursuing partnerships with international entities to unlock regional project potential.
While the total project cost remains undisclosed, Rystad’s estimates suggest it could reach US$260 million (RM1.21 billion) by 2025.
Rystad, in a statement on Monday (Aug 21), said when fully operational, the initiative will have the capacity to capture 3.3 million tonnes per annum of carbon dioxide (CO2) and securely store the collected CO2 within the reservoirs of the Sarawak region over its 25-year operational lifespan.
The Oslo-based firm also said Southeast Asian NOCs and traditional upstream players are progressively focusing on cleaner and more environmentally friendly energy initiatives
Rystad said its analysis revealed a consistent commitment to these initiatives in the years to come, with investments set to exceed US$76 billion from 2023 to 2025.
The firm said the upward trend is set to continue, with a projected total outlay of US$119 billion by the end of 2027. This expenditure will be driven by investments in wind, solar and geothermal projects.
Meanwhile, it said Indonesia’s Pertamina along with Petronas are expanding their participation in the CCUS market.
It said Gentari, a unit of Petronas, has made substantial investments in solar capabilities, seeking to harness the nation's considerable renewable energy potential.
Rystad said Southeast Asia has historically seen slower progress in the development of clean energy projects.
It said effective collaboration between private and public sectors becomes crucial to ensure the region's sustainable long-term growth.
Rystad senior supply chain analyst Afiqah Mohd Ali said Asia is currently making significant strides in prioritising the shift towards greener energy sources, supported by the renewed focus of NOCs.
“This strategic approach will be pivotal in driving Southeast Asia's transition forward to sustainable energy,” said Afiqah.
Rystad estimated that between 2023 and 2026, Petronas will spend US$450 million on CCUS projects and US$330 million on hydrogen developments.
It said Vietnamese NOC PetroVietnam is collaborating with Danish company Orsted and T&T Group to launch the country’s first offshore wind projects.
This partnership underscores their commitment to diverse portfolios and regional low-carbon development.
The project aims to generate about 13.67 million megawatt-hours annually, utilising 20-megawatt turbines standing 150 to 200 metres tall.
The estimated investment in the project is between US$11.9 billion and US$13.6 billion, demonstrating their strong dedication to sustainable advancement.