Company executives during the signing ceremony. Credit: PETRONAS.

PETRONAS, the Abu Dhabi National Oil Company (ADNOC), and Storegga have entered into a joint study and development agreement (JSDA) to assess and develop carbon capture and storage (CCS) facilities in the Penyu basin, offshore Peninsular Malaysia.  

The initiative targets a minimum of five million tonnes per annum (mtpa) of carbon dioxide (CO₂) storage capacity by 2030, with the potential to contribute to Malaysia’s carbon reduction efforts. 

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The JSDA, whose activities are expected to commence later this year, will explore the storage capabilities of saline aquifers in the region. 

Its scope encompasses a CO₂ shipping and logistics study, geophysical and geomechanical modelling, reservoir simulation, containment research, and the potential application of advanced technologies such as AI to optimise storage capacity. 

As part of Malaysia’s National Energy Transition Roadmap Committee, PETRONAS recognises CCS as a critical component for the country’s sustainable and low-carbon future.  

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The Malaysian Government plans to introduce a dedicated CCUS bill by the end of 2024, which is expected to further enable the development of large-scale CO₂ storage solutions. 

The collaboration aims to establish a regional CCS hub that could serve both domestic and international emitters.  

PETRONAS CCS Solutions CEO Nora’in Md Salleh said: “This agreement with ADNOC and Storegga will potentially allow us to build our capability to develop and de-risk saline aquifers as carbon dioxide storage sites by leveraging on our partners’ expertise and experience in other regions.  

“This strategic partnership aligns with PETRONAS’ overarching goal of establishing Malaysia as a regional CCS hub to serve Asia-Pacific where it may build up the storage capacity through saline aquifers.” 

ADNOC senior vice-president for New Energies Hanan Balalaa said: “Carbon capture is an important tool to responsibly reduce carbon emissions and ADNOC will continue to develop this technology as we work towards our Net Zero by 2045 goal.” 

ADNOC has set a goal to achieve a carbon capture capacity of 10mtpa by 2030. 

Storegga, with CCS projects in the UK, the US, and Norway, welcomed ADNOC as a key investor following the latter’s acquisition of a 10.1% equity stake in the company earlier this year.  

This marked ADNOC’s first international equity investment in carbon management.