PETRONAS teams up with ADNOC and Storegga for carbon capture project in Malaysia

PETRONAS, the Abu Dhabi National Oil Company (ADNOC), and Storegga have announced a significant Joint Study and Development Agreement (JSDA) to enhance carbon dioxide (CO2) emissions storage capabilities in the Penyu basin, offshore Peninsular Malaysia.

This landmark agreement aims to achieve a CO2 capture and storage capacity of at least 5 million tonnes per annum (mtpa) by 2030. The agreement’s scope includes a detailed study of CO2 shipping and logistics, as well as geophysical and geomechanical modelling, reservoir simulation, and containment research. Additionally, the initiative will explore advanced technologies, including artificial intelligence (AI), to optimize storage capacity and efficiency.

PETRONAS, a leading player in Malaysia’s energy sector, is focused on establishing Malaysia as a regional CCS hub. Nora’in Md Salleh, Chief Executive Officer of PETRONAS CCS Solutions Sdn. Bhd. (PCCSS), underscored the strategic importance of this partnership. “This agreement with ADNOC and Storegga will potentially enable us to develop and de-risk saline aquifers as CO2 storage sites by leveraging our partners’ expertise in other regions,” Salleh stated. “Our goal is to make Malaysia a pivotal CCS hub for Asia Pacific, building up storage capacity through saline aquifers and supporting our national climate targets.”

PETRONAS is actively involved in Malaysia’s National Energy Transition Roadmap (NETR) Committee, which identifies carbon capture and storage (CCS) as a critical lever for achieving sustainability and low-carbon goals. The Malaysian Government is also expected to table a standalone CCUS bill by the end of 2024, which will further support the development and implementation of CCS technologies.

In addition to its focus on CCS, PETRONAS is committed to enhancing bilateral economic partnerships with the UAE under the Malaysia-UAE Joint Committee for Cooperation (JCC) framework. Salleh added, “With this JSDA, PETRONAS supports the JCC and strengthens our relationship with ADNOC, reflecting our ongoing presence in ADNOC’s unconventional upstream business in Abu Dhabi.”

Storegga, known for its pioneering role in early CCS development, brings valuable experience to the project. Tim Stedman, CEO of Storegga, emphasized the significance of this partnership. “This pioneering collaboration represents a crucial opportunity to develop a world-class CCS hub and drive large-scale industrial decarbonization,” said Stedman. “Storegga’s experience, combined with our partners’ expertise, demonstrates a unified commitment to tackling climate change.”

ADNOC has set a target to achieve a carbon capture capacity of 10 mtpa by 2030, equivalent to the emissions from about 2 million internal combustion vehicles. Hanan Balalaa, Senior Vice President for New Energies at ADNOC, highlighted the role of CCS in their Net Zero by 2045 goal. “Carbon capture is an essential tool for reducing carbon emissions responsibly. ADNOC is dedicated to working with trusted global partners like PETRONAS and Storegga to develop and utilize global carbon management hubs,” Balalaa noted.

The JSDA’s activities are scheduled to commence later this year. The initiative is expected to significantly accelerate regional CCS deployment and strengthen the collaboration between PETRONAS, ADNOC, and Storegga, establishing a robust foundation for a regional CCS hub that will serve both domestic and international emitters.