• Strategic CCS Initiative: PETRONAS, ADNOC, and Storegga join forces to establish a major carbon capture and storage (CCS) hub in Southeast Asia, targeting 5 million tonnes of CO2 storage annually by 2030.
• Regional Leadership: Malaysia’s geological potential, combined with cutting-edge technology, positions it as a future leader in carbon storage, bolstering regional climate goals.
• Global Collaboration: This partnership enhances economic ties between Malaysia and the UAE, with a focus on sustainable development and shared decarbonization efforts.

PETRONAS, ADNOC, and Storegga have signed a Joint Study and Development Agreement (JSDA) to evaluate the carbon dioxide (CO2) storage capabilities of saline aquifers and develop CCS facilities in the Penyu basin, offshore Peninsular Malaysia. This strategic initiative aims to store at least 5 million tonnes of CO2 per year by 2030, contributing significantly to Malaysia’s and the region’s decarbonization goals.

“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,” said Nora’in Md Salleh, CEO of PETRONAS CCS Solutions Sdn. Bhd. She emphasized that the partnership aligns with PETRONAS’ goal of making Malaysia a regional CCS hub for Asia Pacific.

The JSDA’s scope includes CO2 shipping and logistics studies, geophysical and geomechanical modeling, reservoir simulation, and containment research. The partners will explore advanced technologies, including AI, to enhance storage capacity.

Hanan Balalaa, ADNOC’s Senior Vice President for New Energies, remarked, “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.“

Malaysia’s deep saline aquifers offer a unique opportunity to develop large-scale, permanent CO2 storage solutions, reinforcing the country’s leadership in regional CCS deployment. This initiative is not only crucial for Malaysia’s climate targets but also strengthens economic ties with the UAE.

Related Article: Malaysia’s Petronas Signs Deal with JERA to Study Carbon Capture and Storage

Storegga’s CEO, Tim Stedman, highlighted the global significance of this partnership: “This pioneering partnership is an opportunity to develop a world-class CCS hub and bring about large-scale industrial decarbonization.“

The JSDA’s activities are set to commence later this year, marking a significant step forward in global carbon management efforts.