Malaysian state energy company Petronas and South Korea’s POSCO International will jointly explore opportunities in carbon capture and storage (CCS) technologies, as well as carbon dioxide (CO2) storage solutions in Malaysia. Significantly, Petronas wants to establish Malaysia as the leading hub for CCS in the Asia region.
The pair signed a memorandum of understanding that committed to “assess opportunities to unlock CCS potential and identify suitable technology within the scope of carbon capture, transportation of CO2 and storage,” said Petronas.
“Given the multiple business adjacencies between Petronas and POSCO, we are delighted to collaborate in unlocking the opportunities and potential of CCS. This is one of the many efforts to establish Malaysia as a leading CCS solutions hub in the region. POSCO is the largest steel manufacturer in Korea and this collaboration will allow Petronas to leverage on POSCO’s experience especially in carbon capture and transportation,” said Petronas’ executive vice president and chief executive of Upstream, Adif Zulkifli.
Petronas’ giant Kasawari carbon capture and storage (CCS) project, which the company describes as one of the largest in the world, is progressing towards a final investment approval in 2022 after the Malaysian energy company recently invited bids for front-end engineering and design (FEED) contracts.
Petronas said it “is taking deliberate steps to build a resilient and sustainable portfolio to support the transition towards lower carbon energy sources, including evaluating the application of technology towards lowering emissions across the value chain which will encompass carbon capture, transport and storage. The company said it is also pursuing more zero continuous flaring and venting of hydrocarbons to reduce emissions aligned with its aspiration to achieve net zero carbon emissions by 2050.
Last month, Petronas officially awarded Posco International a production-sharing contract (PSC) for Block PM524 in Peninsular Malaysia, marking the South Korean company’s upstream debut in Malaysia.