ADNOC, PETRONAS, And Storegga To Explore Carbon Capture Solutions In Malaysia

ADNOC, PETRONAS, and Storegga have signed a Joint Study and Development Agreement (JSDA) to assess the carbon dioxide (CO2) storage potential of saline aquifers and develop carbon capture and storage (CCS) facilities in the Penyu basin, offshore Peninsular Malaysia. The agreement aims for at least 5 million tonnes per annum (mtpa) of CO2 capture and storage capacity by 2030.

This partnership aligns with PETRONAS' goal of making Malaysia a regional CCS hub for Asia Pacific. The initiative will enhance storage capacity through saline aquifers, contributing to national climate targets. PETRONAS is part of Malaysia's National Energy Transition Roadmap (NETR) Committee, which sees CCS as vital for a sustainable, low-carbon future.

The scope of the agreement includes a CO2 shipping and logistics study, geophysical and geomechanical modelling, reservoir simulation, and containment research. Advanced technologies like artificial intelligence (AI) will be explored to boost storage capacity.

Hanan Balalaa, ADNOC Senior Vice President for New Energies, stated, "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. We are committed to working with trusted global partners like PETRONAS and Storegga to develop and utilise global carbon management hubs, enabling our customers to reduce their emissions and supporting their decarbonisation goals."

Nora'in Md Salleh, CEO of PETRONAS CCS Solutions Sdn. Bhd., remarked on the collaboration: "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."

Enhancing Bilateral Partnerships

Malaysia is keen on strengthening bilateral economic partnerships with the UAE across various sectors such as economy, tourism, entrepreneurship, SMEs, fintech, innovation, transportation, renewable energy, logistics, agriculture, food security, environment, and infrastructure under the Malaysia-UAE Joint Committee for Cooperation (JCC). The JSDA supports this framework while enhancing the relationship between PETRONAS and ADNOC.

The Malaysian Government plans to introduce a standalone CCUS bill by the end of 2024. This legislative move underscores Malaysia's commitment to advancing CCS technologies as part of its broader energy transition strategy.

Storegga's Role in Global CCS

Storegga's involvement is crucial due to its pioneering role in global CCS development. Tim Stedman, CEO of Storegga, said: "This pioneering partnership is an opportunity to develop a world-class CCS hub and bring about large-scale industrial decarbonisation. Storegga's experience from other leading CCS regions plus the expertise of our partners represent a combined intent to act now to tackle climate change."

The geological abundance of deep saline aquifer reservoirs in Malaysia provides an excellent opportunity for large-scale CO2 storage solutions. This agreement aims to accelerate regional CCS deployment while reinforcing collaboration among strategic partners.

Future Prospects

The JSDA activities are expected to commence later this year. ADNOC targets a carbon capture capacity of 10 mtpa by 2030—equivalent to emissions from 2 million internal combustion vehicles. This initiative will lay the groundwork for a regional CCS hub serving both domestic and international emitters.

The success of this project will significantly advance regional CCS capabilities while fostering stronger ties between ADNOC, PETRONAS, and Storegga.

With inputs from WAM