KUALA LUMPUR (Aug 20): Petroliam Nasional Bhd (Petronas) is partnering with the Abu Dhabi National Oil Company (Adnoc) and UK-based Storegga to jointly study and develop carbon capture and storage (CCS) facilities in the Penyu basin, offshore Peninsular Malaysia.

In a joint statement, the three companies said they signed an agreement on Tuesday, aimed at achieving at least five million tonnes per annum of carbon dioxide (CO2) capture and storage capacity by 2030.

The agreement includes a CO2 shipping and logistics study, geophysical and geomechanical modelling, reservoir simulation, and containment research. The project will also explore advanced technologies, including artificial intelligence, to enhance storage capacity.

The joint study and development activities are provisionally scheduled to begin later this year, the statement read.

The companies noted that Malaysia's abundant deep saline aquifer reservoirs are ideal for large-scale, permanent CO2 storage, offering a prime opportunity to establish a CCS hub for both local and international use.

“This agreement with Adnoc and Storegga will help us build our capability to develop and de-risk saline aquifers as CO2 storage sites by leveraging our partners’ expertise and experience from other regions,” said Nora’in Md Salleh, the chief executive officer of Petronas CCS Solutions Sdn Bhd, which was established by Petronas to conduct CCS business activities and to develop and operate CCS infrastructure in Malaysia.

Nora’in said the partnership aligns with the national oil company's goal to establish Malaysia as a regional CCS hub for Asia-Pacific, supporting national climate goals.

Petronas is part of Malaysia's National Energy Transition Roadmap, which identifies CCS as a key strategy for sustainability.

“Malaysia is keen to strengthen economic partnerships with the United Arab Emirates (UAE) across various sectors, including the economy, tourism, entrepreneurship, small and medium enterprises, fintech, innovation, transportation, renewable energy, logistics, agriculture, food security, environment, and infrastructure within the Malaysia-UAE Joint Committee for Cooperation (JCC) framework," said Nora’in.

She said that with the signing of the agreement, Petronas supports the JCC and enhances its relationship with Adnoc, complementing the national oil company's presence in Adnoc’s unconventional upstream business in Abu Dhabi.

Meanwhile, Adnoc senior vice-president for new energies Hanan Balalaa said carbon capture is crucial for reducing emissions, and that Adnoc is committed to advancing this technology to achieve its net zero goal by 2045.

"We are dedicated to working with trusted global partners like Petronas and Storegga to develop and utilise global carbon management hubs, enabling our customers to reduce their emissions and support their decarbonisation goals,” she said.

Tim Stedman, the CEO of Storegga, said the partnership presents an opportunity to develop a world-class CCS hub and drive large-scale industrial decarbonisation. He said their combined expertise shows a strong commitment to tackling climate change now.