A carbon capture and storage (CCS) initiative offshore Malaysia is set to launch by the end of 2028, as per a recently signed key principles agreement (KPA) between Petronas CCS Ventures (PCCSV), a wholly-owned subsidiary of Malaysia’s national energy group Petronas, and three Japanese companies.
The KPA between PCCSV and Japan Petroleum Exploration, or JAPEX (TYO: 1662), engineering specialist JGC Holdings Corporation (TYO: 1963), and transport firm Kawasaki Kisen Kaisha, known as K Line (TYO: 9107), was signed on September 22, according to a joint statement by the three Japanese companies on Monday.
The collaboration, which was initiated by Petronas and JAPEX in January 2022, gained the participation of JGC and K Line in July of the same year.
This agreement solidifies the commitment of the parties involved to collectively mature and develop the CCS project plan and structure.
The groundwork laid in the joint collaboration study includes the assessment of underground carbon dioxide (CO2) storage capacity, marine transportation logistics from emission sources, and the optimal CO2 storage methodology for permanent offshore storage in Malaysia.
The KPA marks the commencement of specific preparatory activities, with an eye on initiating front-end engineering design in 2024.
Subsequent construction works would be aimed at facilitating the injection and storage of CO2, sourced from both Malaysia and Japan, by the end of 2028, the announcement stated.
The partners will proceed with the detailed engineering aspects, encompassing specifications, estimated costs, and business schemes.
This includes the establishment of infrastructure such as CO2 pipelines from onshore gathering points, facilities for receiving liquefied CO2 transported by ships, and offshore injection facilities.
Petronas and JGC plan to collaborate closely with other Malaysian stakeholders to develop the offshore CCS hub in Malaysia, seeking to reach a final investment decision for commercialization in the mid-2020s and to start operations by the end of 2028.
The initial goal of the project is to inject at least 2 million tons of CO2 annually at the project’s outset.
By 2030, this target is set to rise to 5 million tons per year, with further aspirations to exceed 10 million tons annually in the early 2030s.