ADNOC, PETRONAS, Storegga partner for Malaysia CO2 storage

Malaysian state energy firm Petroliam Nasional (Petronas) signed on Tuesday a Joint Study and Development Agreement (JSDA) with Abu Dhabi National Oil Company (ADNOC) and U.K.-based Storegga.

The agreement aims to assess and develop carbon dioxide (CO2) storage capabilities in the Penyu basin, offshore Peninsular Malaysia. It is designed to establish a CO2 capture and storage capacity of at least 5 million tons per year by 2030.

The agreement includes studies on CO2 shipping logistics, geophysical and geomechanical modelling, and reservoir simulation. It will also explore advanced technologies, such as artificial intelligence, to enhance storage capacity.

Nora’in Md Salleh, CEO of PETRONAS CCS Solutions, highlighted the strategic importance of the partnership in establishing Malaysia as a regional CCS hub. The initiative aligns with Malaysia’s National Energy Transition Roadmap and aims to meet national climate targets.

Hanan Balalaa of ADNOC emphasised the role of carbon capture in achieving their Net Zero by 2045 goal, while Storegga’s CEO Tim Stedman underscored the initiative’s potential to drive large-scale industrial decarbonisation.

The JSDA is set to commence later this year, marking a significant step in advancing regional carbon capture and storage capabilities.