Petronas Eyes Seven CCS Sites, Seeks Partners For Carbon Storage Projects

KUALA LUMPUR, June 17 (Bernama) — Petroliam Nasional Bhd (Petronas) is seeking local and international partners across the carbon capture and storage (CCS) supply chain to strengthen its position in the segment, having identified up to seven potential CCS sites in Malaysia.

Petronas Carbon Management Department senior general manager Emry Hisham Yusoff said collaboration is crucial, particularly in developing CCS terminal infrastructure and securing financing.

“We are developing an onshore terminal at Kuantan Port and are seeking local and international partners. Certain capabilities, such as terminal infrastructure, are not available among local players.

“At this stage, Petronas is undertaking 100 per cent of the work on the Kuantan terminal, while we continue to identify suitable partners,” he said during an exclusive CCS media dialogue hosted by Petronas today.

The session was held in conjunction with the Energy Asia 2025 conference.

Petronas is also working closely with global players such as TotalEnergies, Mitsui & Co, and a Japanese consortium comprising JGC Holdings and K Line, which are collaborating with emitters from Japan to explore CCS storage opportunities in Malaysia.

On the financing front, Emry explained that CCS projects don’t always qualify as “green” investments because they involve handling carbon dioxide (CO₂) emissions. While the goal is to mitigate climate impact, the process is not always classified as environmentally friendly.

He noted, however, that Singapore has introduced a framework for transition financing, under which CCS qualifies.

“This shows we cannot do this alone. We need partners across every stage of the value chain we are working on,” he added.

Emry also revealed that Petronas has identified up to seven potential CCS sites nationwide, in addition to three existing sites, two in Peninsular Malaysia and one in East Malaysia.

“One of the two sites in Peninsular Malaysia is located within the Malaysia-China Kuantan Industrial Park. We aim to provide decarbonisation solutions to industries in the area through CCS, supporting Malaysia’s nationally determined contribution (NDC) under its climate commitments,” he said.

He also highlighted the M1 site, which will serve as a storage location for CO₂ captured from the Kasawari gas field, a major natural gas development linked to Petronas’ LNG portfolio. The Kasawari CCS project will handle CO₂ emissions that account for 20 per cent of the gas field’s output.

To date, Petronas has invested up to RM5 billion in CCS initiatives, underscoring its commitment to building a robust ecosystem for long-term CO₂ storage.

The company is targeting a minimum CCS capacity of 80 million tonnes per year, covering both its emissions and Malaysia’s domestic needs.

“We believe the potential goes beyond that figure. We just need more time for studies to mature and ensure the sustainability of the storage sites,” he said.

— BERNAMA