KUALA LUMPUR, Sept 22 (Bernama) -- Petroliam Nasional Bhd’s (Petronas) wholly-owned subsidiary, Petronas CCS Ventures Sdn Bhd, has signed a term sheet with Mitsui O.S.K Lines Ltd (MOL) and MISC Bhd for the potential incorporation of a joint venture entity to invest in developing and monetising liquefied carbon dioxide (LCO2) carriers for carbon capture and storage (CCS) projects in Malaysia.
The parties had agreed in principle on the key commercial terms to allow progress to the next stage.
Petronas executive vice-president and chief executive officer of upstream, Datuk Adif ZulkifliAdif said LCO2 carriers are integral to the CCS value chain to connect customers to carbon capture sites and storage locations.
“Our partnership with MOL and MISC is a powerful synergy of multiple expertise, abundant resources, and shared values.
“By combining our individual strengths, we will be able to facilitate the development and subsequently materialise the transportation of liquefied CO2 in a safe and sustainable manner,” he said in a statement today.
Petronas said building on the February 2022 memorandum of understanding signed with MOL and the four approvals in principle (AiPs) for the conceptual design of the LCO2 carriers in June 2023, the term sheet marked another milestone for the positioning of CCS as a key lever in Petronas’ net zero carbon emissions by 2050 ambition.
Meanwhile, MISC president/group chief executive officer, Captain Rajalingam Subramaniam said the company is pleased to partner with Petronas and MOL in this strategic venture, which he considered a perfect fit with MISC’s advocacy for a just transition, where responsible practices take centre stage in managing societal emissions.
“As a future-focused shipowner, MISC is well-equipped to deliver the technical expertise required for LCO2 shipping, a crucial link in the carbon capture and storage value chain.
“Our call to the maritime and other hard-to-abate industries is to collaborate for the betterment of everyone through viable solutions that are available,” he said.
Petronas said the partnership further reinforces its commitment in establishing Malaysia’s potential as a prominent regional hub for CCS.
In line with its strategic objectives, the group actively collaborates with industry partners, taking deliberate actions to accelerate the development of a sustainable energy portfolio that prioritises responsible practices, it said.
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