Malaysia’s PETRONAS signs agreement with Shell to explore CCS solutions

SINGAPORE (ICIS)–Malaysia state-owned oil and gas major PETRONAS on Tuesday said that it has signed a deal with Shell to explore opportunities and project collaborations in carbon capture and storage (CCS) to help provide carbon dioxide (CO2) storage solutions in Malaysia and the region.

Under the agreement, PETRONAS and Shell will perform an integrated CCS Area Development Plan study to support the decarbonisation ambitions of both parties within selected locations offshore Sarawak.

The scope of the agreement includes exploring the provision of decarbonisation services to Shell’s local and cross-border facilities, as well as to other potential regional customers.

The outcome of the study will produce options in potential areas for further collaboration.

In November 2021, PETRONAS signed a memorandum of understanding (MoU) with ExxonMobil Exploration and Production Malaysia Inc to explore opportunities in CCS technologies to support the decarbonisation of Malaysia’s upstream industry as well as to provide CO2 storage solutions for the region.

In December 2021, an MoU was signed with POSCO International Corporation and POSCO Engineering & Construction Co Ltd to assess for opportunities to unlock CCS potential and identify suitable technology within the scope of carbon capture, transportation of CO2 and storage for potential application.

“PETRONAS is taking deliberate steps to build a resilient and sustainable portfolio to support the transition towards lower carbon energy sources,” the company said.

“The company 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,” it added.