ADNOC, PETRONAS, Storegga tie up on offshore CCS project in Malaysia

Energy giants Abu Dhabi National Oil Company (ADNOC) and PETRONAS along with Storegga have signed a joint study and development agreement (JSDA) to explore and develop carbon capture and storage (CCS) solutions in the Penyu basin, offshore Peninsular Malaysia.

The collaboration aims to establish at least five million tonnes per annum (mtpa) of carbon dioxide (CO2) storage capacity by 2030.

The agreement focuses on identifying suitable saline aquifers for safe and permanent CO2 storage, enhancing Malaysia’s potential as a regional CCS hub.

The partners will conduct a range of studies, including geophysical and geomechanical modelling, reservoir simulation and logistics planning while leveraging advanced technologies such as artificial intelligence to maximise storage efficiency.

Aligned with PETRONAS and Malaysia’s aims

“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,” said Nora’in Md Salleh, CEO of PETRONAS CCS Solutions. “This strategic partnership aligns with PETRONAS’ goal of establishing Malaysia as a regional CCS hub, contributing to the national climate target.”

Malaysia’s geological wealth of deep saline aquifers presents an opportunity for large-scale CO2 storage, essential for the country’s role in global decarbonisation efforts.

The Malaysian government, recognising the importance of CCS, is set to introduce a standalone carbon capture, utilisation and storage (CCUS) bill by the end of 2024.

ADNOC’s SVP for New Energies, Hanan Balalaa, emphasised the significance of carbon capture in achieving the company’s Net Zero by 2045 target. “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,” Balalaa said.

Storegga’s CEO, Tim Stedman, noted the pioneering nature of the partnership. “This 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, combined with our partners’ expertise, represents a united intent to tackle climate change now,” Stedman remarked.

The JSDA’s activities are expected to commence later this year, marking a significant step towards establishing a regional CCS hub in Southeast Asia that serves both domestic and international emitters.

The initiative is poised to accelerate CCS deployment in the region and strengthen ties between Malaysia, the UAE and key industry players.

ADNOC is targeting a total carbon capture capacity of 10 mtpa by 2030, equivalent to the emissions from two million internal combustion vehicles, further demonstrating the global push towards decarbonisation.