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The Star
06-07-2025
- Business
- The Star
PETRONAS PUSHES FORWARD ON CCS
KUALA LUMPUR: Malaysia's national oil and gas company Petroliam Nasional Berhad (PETRONAS) is progressing steadily with plans to begin carbon capture and storage (CCS) operations by end of 2029, targeting an initial storage capacity of 15 million tonnes of CO2 per annum. The effort represents one of four key pillars in PETRONAS' decarbonisation strategy, supporting its long-term goal of achieving net zero carbon emissions by 2050. Apart from ensuring energy security for the nation, through the development of CCS infrastructure, the company aims to decarbonise its own operations while helping to build Malaysia's capability to offer storage solutions for industrial emitters across the region. Speaking during a CCS media dialogue held on June 17 at the Kuala Lumpur Convention Centre in conjunction with Energy Asia 2025, Emry Hisham Yusoff, head of PETRONAS' carbon management division, said the company is establishing a network of offshore storage sites and related infrastructure such as pipelines, port terminals and CO2 transport vessels to serve both domestic needs and potential cross-border demand from Japan, South Korea and Singapore. Reducing emissions through CCS 'Carbon capture and storage is one of the key pillars in PETRONAS' broader decarbonisation efforts,' Emry said. 'We've leveraged our offshore capabilities, including seismic data analysis and well drilling, to repurpose depleted oil and gas fields for permanent CO2 storage.' He explained that CCS wells differ from traditional production wells in purpose and design. 'Unlike wells drilled to extract hydrocarbons, CCS wells are designed to inject CO2 deep underground and ensure it stays sealed,' he added. PETRONAS' flagship Kasawari CCS project off the coast of Sarawak has commenced gas production and is progressing through the carbon capture phase. However, CO2 injection operations have yet to begin. While Kasawari plays an important role in developing technical expertise, the broader focus is shifting towards infrastructure development in Peninsular Malaysia, especially near industrial zones such as the Malaysia-China Kuantan Industrial Park. Other prospective sites under assessment include the Lawit gas field off Terengganu, and the Duyong gas field and Penyu basin near the Pahang coast. PETRONAS carbon capture and storage head Nor A'in Md Salleh shared that five to seven CCS sites across Malaysia are in varying stages of evaluation. 'The total assessed storage capacity currently stands at around 2.4 billion tonnes,' she said, noting that future assessments may increase that figure as more geological data becomes available. Growth potential PETRONAS sees CCS as a new service line within its broader portfolio, offering decarbonisation solutions for regional industrial emitters. 'Our infrastructure is designed to support industries in Malaysia and neighbouring countries that have declared ambitious net-zero targets,' Emry said. He explained that PETRONAS is actively engaging with emitters in Singapore and South Korea, while also exploring collaboration opportunities with Japan, which aims to capture between 120 and 240 tonnes of CO2 annually by 2050 as part of its decarbonisation efforts. 'With the right infrastructure in place, Malaysia could attract industries producing low-carbon products such as blue ammonia and blue hydrogen, both of which rely on CCS to manage their carbon footprints,' Emry added. 'This is not just about PETRONAS. It is about building a broader ecosystem that enables real climate action, both locally and regionally,' he said. In line with this, PETRONAS is partnering with Mitsui OSK Lines and MISC Berhad to develop what could become the world's first large-scale liquefied CO2 transport vessel, enabling cross-border shipment of captured carbon. Current vessel sizes remain limited, and this development is seen as critical to scale-up. The company has completed front-end engineering design for the vessel, and subsequent development phases are expected to proceed smoothly. Meanwhile, the company's strategy, planning and commercial, carbon management head Faizah Ramlee said the Japanese government has selected Malaysia as a storage destination for captured CO2 emissions from Japan, reflecting an ongoing collaboration between Malaysia, Japan and other partners. 'Our partners are also on board to secure customers that we'll be servicing with carbon capture and storage solutions, and we are also working closely with our LNG marketers to support their customers who are looking for carbon capture solutions.' Addressing high costs and market readiness While interest in CCS is growing, Emry acknowledged that economic viability remains a significant challenge, especially at the capture stage. 'The capture process is expensive, and industries may find it hard to absorb these costs without regulatory incentives or clear market signals,' he said. 'Unless there's a price differential or regulatory push, widespread adoption will remain limited.' To overcome these barriers, PETRONAS is working on cost optimisation through fit-for-purpose and standardised infrastructure, as well as economies of scale. Although it will not be directly implementing capture technology for industrial users, the company plans to provide technical guidance and best practices. Emry said PETRONAS aims to support industrial emitters by sharing insights on efficient capture technologies and emphasised the importance of aligning capture efforts with storage readiness timelines. 'The start of our CCS operations depends heavily on the readiness of industrial partners to align their capture efforts with our storage infrastructure rollout.' Regulatory landscape and safety Malaysia's legal framework for CCS is evolving. Emry noted that while the Petroleum Development Act 1974 currently governs storage in depleted fields, additional regulations are needed to address CO2 capture from non-oil and gas sources and cross-border transport. He added that the recent passage of a Carbon Capture, Utilisation and Storage (CCUS) Bill 2025 by Parliament, pending gazettement, will help formalise oversight and establish a dedicated authority to regulate the CCS industry in Malaysia. Preparing for all eventualities Environmental safety is central to PETRONAS' CCS strategy. The company has drawn lessons from pioneering CCS projects in Norway, such as Sleipner and Northern Lights, to inform its approach to risk mitigation. 'We have used insights from these projects to guide our environmental impact assessment,' Nor A'in said. PETRONAS evaluates four main criteria when selecting sites: the presence of impermeable cap rocks, injectivity, reservoir safety and minimum storage depth. 'We've set a minimum depth of 1,000 metres for all sites. Even in the unlikely event of a small leak, the impact would be negligible at that depth,' she explained. Building for a low-carbon future While energy supply remains PETRONAS' core business, CCS is being developed as a commercially viable solution to support industries, particularly in hard-to-abate sectors. 'CCS is one of the essential tools for industrial decarbonisation and a sustainable energy future in the region,' Emry said. He added that broader adoption depends on ecosystem readiness, including industrial emitters, supportive regulations, and shared infrastructure, and that Malaysia's geological advantages combined with PETRONAS' offshore expertise provide a solid foundation for progress.
Borneo Post
18-06-2025
- Business
- Borneo Post
PETRONAS, MISC and MOL to advance cross-border CO2 transportation
The three parties have recently completed the front-end engineering design (FEED) for a 62,000 cubic metre LCO2 carrier, which was awarded to SDARI. KUALA LUMPUR: PETRONAS CCS Ventures Sdn Bhd (PCCSV), MISC Berhad (MISC), and Mitsui OSK Lines, Ltd (MOL) together announced the incorporation of a strategic joint venture (JV) to lead the development and act as the ultimate owner of liquefied carbon dioxide (LCO₂) carriers. The JV, named Jules Nautica Sdn Bhd, is critical for transporting LCO₂ to designated storage sites as part of advancing carbon capture and storage (CCS) solutions. The three parties have recently completed the front-end engineering design (FEED) for a 62,000 cubic metre LCO2 carrier, which was awarded to Shanghai Merchant Ship Design and Research Institute (SDARI). In December 2024, this jointly developed design received the General Approval for Ship Application (GASA) certification from DNV, establishing it among the most developed Low Pressure Low Temperature LCO2 carrier designs in the industry. The JV aims to become a leading owner of LCO2 carriers, facilitating the safe and efficient transportation of LCO2 to designated CO₂ storage sites. Focused on supporting future CCS projects across the Asia Pacific region, the JV will also play a key role in completing the CCS value chain. Through strategic commercial agreements with CO2-emitting industries and storage companies, this partnership will provide a critical cross-border solution to meet growing environmental and regulatory needs. PCCSV's chief executive officer Emry Hisham Yusoff added, 'This joint venture marks a pivotal step forward in our collective mission of advancing decarbonisation efforts in the region. 'By leveraging the strengths of PCCSV, MISC, and MOL, we are progressing the development of LCO2 carriers and working towards more efficient shipping solutions. This collaboration highlights our focus on responsible innovation.' The joint venture recognises the critical role of cross-border collaboration in addressing our mutual goal in transitioning the region responsibly towards a low-carbon future. Representatives from PETRONAS, MOL, and MISC collectively form the Board of Directors of Jules Nautica. CCS liquified carbon dioxide Petronas
New Straits Times
17-06-2025
- Business
- New Straits Times
Petronas-led venture to build fleet of liquefied CO2 carriers
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), via its unit Petronas CCS Ventures Sdn Bhd, has formed a joint venture (JV) with MISC Bhd and Mitsui OSK Lines Ltd to develop and own liquefied carbon dioxide (LCO2) carriers. The JV company, Jules Nautica Sdn Bhd, will support cross-border carbon capture and storage (CCS) initiatives by transporting LCO2 to designated storage sites across the Asia Pacific region. The partnership follows the completion of front-end engineering design for a 62,000-cubic-metre LCO2 carrier, awarded to Shanghai Merchant Ship Design and Research Institute. "The JV strengthens our position in the carbon management value chain and enables cross-border CCS infrastructure to take shape," said Petronas CCS Ventures chief executive officer Emry Hisham Yusoff. He added the design received General Approval for Ship Application certification from classification society DNV in December 2024. Jules Nautica aims to play a key role in completing the CCS value chain by facilitating safe and efficient LCO2 transport. The venture plans to engage with carbon-emitting industries and storage providers to offer cross-border CCS solutions in line with tightening environmental regulations. The initiative forms part of wider efforts by Petronas and its partners to position Malaysia as a regional hub for carbon management services.
New Straits Times
17-06-2025
- Business
- New Straits Times
Petronas ramps up carbon storage efforts to anchor Malaysia's low-emissions future
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is ramping up its carbon capture and storage (CCS) efforts, positioning the technology as both a key enabler of Malaysia's climate ambitions and a new economic frontier for attracting low-carbon investments and regional emitters. Carbon management senior general manager Emry Hisham Yusoff said Petronas is developing multiple offshore storage sites and related infrastructure to transform Malaysia into a leading CCS hub for Southeast Asia. Beyond addressing emissions from its own operations, he said Petronas sees CCS as a commercial solution to support decarbonisation across industries such as steel, cement and petrochemicals. He added that CCS is central to the national oil company's long-term sustainability strategy and is being developed as a new line of business. "CCS is not just about emissions reduction. It is a new service line and a commercial venture for us," he said at the Energy Asia 2025 media dialogue session here today. "With the right infrastructure, Malaysia can attract low-carbon product manufacturers, such as blue ammonia and blue hydrogen producers, to set up operations here," he added. Emry also highlighted that Malaysia's depleted oil and gas fields offer suitable geological formations for long-term CO2 storage, giving the country a strategic edge in regional decarbonisation. "Petronas reduced its emissions from 59 million tonnes in 2019 to 46 million tonnes in 2023, with a target to cut at least 25 per cent of equity emissions by 2030 across both operated and non-operated assets. "However, the pace of implementation depends on the readiness of industrial partners to align their timelines with Petronas' infrastructure rollouts," he said. Petronas estimates that its investments in CCS projects will range between RM4.5 billion and RM5 billion, underscoring its commitment to building the necessary ecosystem for permanent CO2 storage. Speaking at the same session, Petronas CCS carbon management division general manager Nor A'in Md Salleh said the company is focusing on the entire CCS value chain, including capture, transportation, onshore terminals and permanent offshore storage. "We have identified five to seven potential CCS sites at different stages of development. Two are located in Peninsular Malaysia, including one within the Malaysia-China Kuantan Industrial Park, and one is in Sarawak," she said. Among these, she added, the M1 site is the most advanced and will serve as the storage location for CO2 captured from the Kasawari gas field, a major natural gas development linked to Petronas' liquefied natural gas (LNG) portfolio. Petronas is also constructing a dedicated onshore liquefied CO2 terminal in Kuantan to facilitate transportation and storage operations. Partner selection for this terminal is ongoing. The CCS programme is closely tied to the company's LNG business, as Petronas is piloting CO2 capture directly from its LNG production facilities. Emry said the commercial viability of decarbonised LNG remains limited in the absence of carbon pricing or market premiums. "When we capture CO2 from our own LNG facilities, it becomes a cost to us – but there is no differentiated price for low-carbon LNG in the market. That makes it difficult to compete with others who are not pursuing decarbonisation," he said. Looking ahead, Petronas is optimistic that frameworks such as Singapore's transition finance taxonomy, which now classifies CCS as a green activity, will improve access to sustainable financing. "We have long said climate change knows no borders. Just because we store CO2 here does not mean Malaysia is the only beneficiary. We can enable emissions reduction across the region while securing our own energy future," said Emry. Petronas is working closely with global partners such as TotalEnergies, Mitsui & Co, and a Japanese consortium comprising JGC Holdings and K Line, which are engaging emitters from Japan to collaborate on CCS storage in Malaysia. This, Emry said, reflects strong cross-border interest and validates Malaysia's potential as a regional CCS destination. In line with this, Petronas is also engaging with industrial emitters in Korea and Singapore that are seeking access to storage options in Malaysia to meet their respective national decarbonisation targets. As part of its broader push towards net-zero carbon emissions by 2050, the company aims to launch CCS as a commercial service by late 2029 or early 2030. "This is not just about Petronas. It is about building a broader ecosystem that enables real climate action – locally and regionally," Emry added.
Zawya
21-05-2025
- Business
- Zawya
Oman: Energy shift must balance business, climate
MUSCAT: The energy transition must strike a pragmatic balance between climate ambitions and business sustainability, said Emry Hisham Yusoff, Senior General Manager of the Carbon Management Division, Upstream at Malaysia's Petronas. Speaking at a panel session during the Oman Petroleum & Energy Show (OPES), Yusoff addressed growing concerns among industry stakeholders about the economic viability of decarbonisation pathways, especially in the context of carbon capture and storage (CCS) and other capital-intensive interventions. 'Yes, there is pressure in investor and stakeholder meetings,' he acknowledged. 'But we must ensure that alignment remains between long-term climate targets and the realities of running viable energy businesses.' Yusoff noted that natural gas continues to play a critical role in Malaysia's energy mix, not just as a transition fuel but also as a core product in global markets. 'Gas demand is still growing—especially in Asia. We continue to see interest in LNG and related projects. It's not about stopping activity, but about transforming it responsibly.' On CCS, Yusoff was cautious but optimistic. 'In places like the US, where the government supports CCS through incentives such as the Inflation Reduction Act (IRA), projects are moving. But for us in Southeast Asia, the economics are different. The CO₂ concentration in our emissions streams is often below 4%, which makes capture much more energy- and cost-intensive,' he explained. He added that Petronas is now reassessing how best to approach energy efficiency and emissions reduction. 'We are working to reduce our own energy use and emissions intensity across upstream operations. But we also need to consider whether investments are achieving meaningful impact or just adding operational complexity.' Yusoff emphasised that energy transition strategies must be tailored to regional and operational contexts. 'This is not a copy-paste exercise. We must understand what works locally and where we need to refocus efforts.' 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
