Malaysian national oil company Petronas has signed an agreement with ExxonMobil to jointly explore carbon capture and storage (CCS) technologies to decarbonize Malaysia’s upstream industry and provide carbon dioxide storage solutions for the region. The collaboration further aimed at accelerating the company’s goal of net-zero carbon emissions by 2050.
The Memorandum of Understanding (MoU) will cultivate an assessment of potential CCS projects at multiple locations off the coast of Peninsular Malaysia, as well as identification of relevant technologies within the area of carbon collection, transportation, and storage. In order to measure and characterize CO2 storage, the two firms will also share subsurface technical data. The collaboration will further assess the possibilities for existing infrastructure to be repurposed for transportation and storage by exchanging data on pipelines, facilities, and wells.
Petronas’ ongoing efforts to efficiently produce and optimize its oil and gas assets to generate resources to fund growth, facilitate advancement, and allow the firm to decarbonize and reduce greenhouse gas emissions are in coherence to the MoU. It is part of the key initiatives to establish Malaysia as a regional leader in CCS solutions.
To improve the transition to low-to-zero carbon energy sources, Petronas has been taking intentional steps to establish a robust and sustainable portfolio. These include developing, testing, and piloting a suite of technologies in its first offshore CCS project, which is scheduled to begin CO2 injections in 2025, as well as implementing zero continuous flaring and venting of hydrocarbons to reduce emissions while reshaping its portfolio mix for cleaner sources of energy.
(Sources: Petronas, ExxonMobil; The Edge Markets)