PETRONAS, ADNOC, and Storegga have signed a Joint Study and Development Agreement (JSDA) to assess CO₂ storage in saline aquifers and build CCS facilities in the Penyu Basin, offshore Peninsular Malaysia. The agreement aims for a CO₂ storage capacity of at least 5 million tonnes per annum (mtpa) by 2030. It includes studies on CO₂ shipping, logistics, geophysical and geomechanical modelling, and the use of advanced technologies like AI.
PETRONAS CEO Nora’in Md Salleh stated that this partnership will enhance Malaysia’s capability to develop saline aquifers for CO₂ storage and supports its goal of becoming a CCS hub for Asia Pacific. The initiative also aligns with national climate targets.
PETRONAS is part of Malaysia’s National Energy Transition Roadmap (NETR) Committee, which has designated CCS as a key component for the country’s sustainable and low-carbon future. The Malaysian Government plans to introduce a standalone CCUS bill by the end of 2024.
PETRONAS CEO Nora’in Md Salleh highlighted Malaysia’s intent to strengthen economic ties with the UAE across various sectors through the Malaysia-UAE Joint Committee for Cooperation (JCC). The JSDA with ADNOC and Storegga supports this framework and enhances PETRONAS’s collaboration with ADNOC, reflecting PETRONAS’s active role in ADNOC’s upstream projects in Abu Dhabi.
Storegga, a pioneer in global CCS development, is a crucial partner in this initiative, contributing its extensive experience to the project.
Hanan Balalaa, ADNOC Senior Vice President for New Energies, emphasized that carbon capture is crucial for reducing emissions. ADNOC is committed to advancing this technology to achieve its Net Zero by 2045 goal and will work with PETRONAS and Storegga to establish global carbon management hubs that aid in customer decarbonization.
Malaysia’s deep saline aquifers offer significant potential for large-scale CO₂ storage, and the agreement is set to accelerate CCS development in the region. This initiative aims to establish a major CCS hub for both domestic and international emissions. ADNOC targets a carbon capture capacity of 10 mtpa by 2030, equivalent to the emissions of 2 million vehicles.
Storegga CEO Tim Stedman highlighted the partnership’s potential to create a leading CCS hub and drive substantial industrial decarbonization. The JSDA activities are expected to start later this year.
