Petronas said on June 28 that it has signed a development agreement with TotalEnergies Carbon Neutrality Ventures and Mitsui & Co. Ltd. to collaborate on a carbon capture and storage (CCS) project in Malaysia.
The agreement will cover all aspects of CCS development, from evaluating maturing depleted field and saline aquifers for storage, to identifying potential customers and establishing the necessary legal and commercial frameworks.
The deal follows a memorandum of understanding (MoU) signed by the companies in 2022.
A CCS process captures CO2 generated from industrial activity, transports it, and then stores it underground.
TotalEnergies indicates that in Asia, where countries such as South Korea and Japan have promised to be net zero in 2050, development of a CCS value chain for hard-to-abate sectors will need a specific regulatory framework and significant investment.
“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,” said Tengku Muhammad Taufik, Petronas chief executive.
CCS is based on existing technologies and seen as an affordable solution to decarbonize the hard-to-abate emitters, said Toru Matsui, representative director and senior executive managing officer of Mitsui & Co.
“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,” he said.