PETRONAS, ADNOC, and Storegga have announced the signing of a Joint Study and Development Agreement to assess the carbon dioxide emissions storage capabilities of saline aquifers and explore the construction of carbon capture and storage facilities in the Penyu basin, offshore Peninsular Malaysia.
The agreement targets the capture and storage of at least 5 million tonnes per annum of CO2 by 2030. The scope of the JSDA includes a comprehensive study on CO2 shipping and logistics, geophysical and geomechanical modelling, reservoir simulation, and containment research. The partners will also explore the application of advanced technologies, including artificial intelligence (AI), to enhance storage capacity.
Nora’in Md Salleh, CEO of PETRONAS CCS Solutions Sdn. Bhd., expressed optimism about the partnership: “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. This strategic partnership aligns with PETRONAS’ overarching goal of establishing Malaysia as a regional CCS hub to serve Asia Pacific, where it may build up the storage capacity through saline aquifers. This also demonstrates our earnestness in establishing the right pace to deliver CCS hubs here while also contributing to the national climate target.”
As a member of Malaysia’s National Energy Transition Roadmap Committee, PETRONAS is committed to CCS as one of six key energy transition levers that will help the country achieve sustainability, low-carbon development, and resilience. The Malaysian government is expected to introduce a standalone CCUS bill by the end of 2024.
Nora’in Md Salleh further emphasised Malaysia’s interest in strengthening bilateral economic partnerships with the UAE in areas such as renewable energy, logistics, and infrastructure, under the Malaysia-UAE Joint Committee for Cooperation framework. The JSDA supports the JCC and enhances the relationship between PETRONAS and ADNOC, complementing PETRONAS’ presence in ADNOC’s unconventional upstream business in Abu Dhabi.
ADNOC senior vice president for New Energies, Hanan Balalaa, highlighted the significance of carbon capture in reducing emissions and reaffirmed ADNOC’s commitment to advancing this technology: “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.”
Malaysia’s deep saline aquifer reservoirs are expected to facilitate the development of large-scale, permanent CO2 storage solutions, and this agreement is set to accelerate regional CCS deployment while strengthening collaboration between the strategic partners. The success of this initiative will establish a regional CCS hub serving both domestic and international emitters.
ADNOC is targeting a carbon capture capacity of 10 mtpa by 2030, equivalent to the emissions from 2 million internal combustion vehicles.
Tim Stedman, CEO of Storegga, expressed enthusiasm for the collaboration: “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 JSDA’s activities are expected to commence later this year.
For more information visit www.adnoc.ae
