Petronas, TotalEnergies and Mitsui advance carbon storage hub in Malaysia

French supermajor TotalEnergies is teaming up with Malaysia’s national energy giant Petronas and Mitsui of Japan to develop a carbon storage project in Southeast Asia.

The partners will evaluate several potential CO2 storage sites in the Malay basin, including depleted offshore fields and saline aquifers. The trio aims to develop a CO2 merchant storage service to decarbonise industrial customers in Asia.

In Asia, where countries such as South Korea and Japan have pledged to be net zero in 2050, development of a CCS value chain for hard-to-abate industrial emissions will require a specific regulatory framework and significant investment, noted TotalEnergies.

The company on Monday confirmed the partners would study several potential storage sites, determine the best technical means to deliver CO2 to Malaysia from industrial clusters in the region and develop the most appropriate business framework for commercialisation of a carbon storage service in Malaysia.

“TotalEnergies is pleased to join forces with Petronas and Mitsui on a carbon storage hub in Malaysia to support decarbonisation in Asia. We will bring to the partnership our strong CCS expertise, anchored in Europe with a first integrated project in Norway due to start next year and several other projects that will contribute to meeting our carbon storage capacity target of 10 million tonnes per year by 2030,” said TotalEnergies chief executive. Patrick Pouyanne.

Petronas, TotalEnergies and Mitsui on Monday signed a development agreement to jointly pursue a CCS project project in Malaysia. Petronas confirmed the scope of the agreement covers all aspects of CCS development from evaluating maturing depleted field and saline aquifers for storage, to identifying potential customers and establishing the necessary commercial and legal frameworks.

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The partnership also paves the way for the first of its kind integrated CCS solution for industries in the Asia Pacific region, noted the national energy giant.

“The strategic partnership demonstrates Petronas’ commitment to position Malaysia as a regional CCS hub to capture opportunities in the energy transition with a focus on reducing the carbon footprint of our operations to continue delivering the energy needs of today,” said Tengku Muhammad Taufik, Petronas chief executive.

Toru Matsui, representative director, senior executive managing officer of Mitsui & Co, said that CCS is based on existing technologies and seen as an affordable solution to decarbonise the hard-to-abate emitters.

“Mitsui will utilise its expertise in the oil and gas upstream activities and extensive business networks to jointly work with Petronas and TotalEnergies to develop a CCS value chain project in Malaysia,” said Matsui.