At Energy Asia 2025, PETRONAS unveils its CCS roadmap — from offshore storage and CO₂ shipping to regulatory reform — as it eyes a new role for Malaysia in regional emissions solutions.
By : PHUBIEYAS AHMAD
KUALA LUMPUR, 17 June — With global attention turning toward climate action and industrial decarbonisation, Malaysia is positioning itself as a regional centre for carbon capture and storage (CCS) — with PETRONAS leading the charge.
In a candid, media-only dialogue held during Energy Asia 2025, PETRONAS unveiled key developments in its CCS strategy, including updates on storage sites, shipping infrastructure, and new international partnerships.
The session featured Emry Hisham Yusoff, Senior Manager, Carbon Management Division; Nor A’in Md Salleh, General Manager of CCS; and Faizah Ramlee, General Manager, Strategy, Planning & Commercial.
“This is about more than just cutting emissions,” said Emry Hisham. “We’re building a new value chain — one that can make Malaysia a hub for managing industrial carbon, not just for ourselves but for the region.”
From Kasawari to Kuantan: A Multi-Site CCS Rollout PETRONAS’ flagship project, Kasawari CCS, is located offshore Sarawak and is expected to store CO₂ in the M1 reservoir, with an investment of RM4.5 to RM5 billion.
“This is one of the largest offshore CCS developments in the region,” Emry noted. “The investment reflects our long-term view — CCS is not a side effort, it’s becoming core to how we think about decarbonisation and future growth.”
Other projects under active development include:Duyong (Terengganu offshore, with partners Total Energies and Mitsui) Penyu, a saline aquifer storage site (with UK-based Storegga) Lawit, another candidate site under assessment Onshore, PETRONAS is developing a CO₂ terminal in Kuantan Port to serve industrial emitters, particularly those within the Malaysia-China Kuantan Industrial Park.
Technical Validation and Environmental Safeguards Nor A’in Md Salleh explained that PETRONAS has screened and studied five to seven potential storage sites, with 2.4 billion tonnes of cumulative capacity identified so far.
“We take a rigorous approach to site selection,” she said. “Our minimum criteria include deep reservoirs of more than 1,000 metres, permanent geological sealing, and low leakage risk.”
Nor A’in also clarified PETRONAS’ cooperation with the Department of Environment on environmental impact studies. “While CCS isn’t yet on the EIA schedule, we’re conducting full environmental studies voluntarily. We want to be accountable — both to science and to society.”
CO₂ Ships, Pipelines, and Regional ReachMalaysia’s CCS ambitions extend far beyond its borders. Faizah Ramlee outlined how PETRONAS is designing infrastructure to receive CO₂ from emitters in Japan, Korea, and Singapore, supported by new bilateral frameworks.
“What we’re building isn’t just for Malaysia,” said Faizah. “Singapore and Japan don’t have storage capacity — we do. And with the right regulatory support, we can offer long-term, verifiable carbon storage at scale.” She added that PETRONAS is co-developing the world’s first large-scale liquid CO₂ vessels with top-tier shipping firms to enable cross-border transport.
“This opens a new service economy — not just emission management, but emissions logistics.”‘We Can’t Do This Alone’All three speakers stressed that CCS is not a solo mission.“There’s a lot of unknowns,” said Emry.
“When we started, CCS looked complicated. Four years later — it still is. But now we understand the risks better. That’s why we’re working with partners across the entire value chain — capture, transport, storage, financing, and technology.”
PETRONAS is currently collaborating with Mitsui O.S.K. Lines, Total Energies, JGC Holdings, Storegga, and other international stakeholders to accelerate deployment and reduce cost barriers.
Legal Framework and Market Confidence Malaysia’s newly passed CCS Bill is set to provide the legislative foundation for licensing and cross-border CO₂ movement.
Emry confirmed that PETRONAS has been closely involved in shaping the regulatory roadmap.“If we want to build trust — with the public, with our partners, with other governments — regulation must come first,” he said. “We’ve been pushing hard for it, because the long-term credibility of CCS depends on it.”
Economic Upside Beyond Climate Goals By 2030, PETRONAS targets 80 million tonnes of annual CO₂ storage capacity, which includes its own emissions and third-party demand. Faizah believes this infrastructure could catalyse Malaysia’s next phase of industrial growth.
“CCS can trigger a new economic wave for Malaysia,” she said. “If you have the storage infrastructure in place, you can attract low-carbon manufacturers who need it. Blue ammonia, low-carbon steel, even fertilisers — that’s the next opportunity.”
Snapshot: Malaysia’s CCS Momentum Kasawari CCS: RM4.5–5 billion project, M1 offshore site Other hubs: Duyong, Penyu, Lawit Target storage: 80 million tonnes per year by 2030 Partners: Total, Mitsui, Storegga, JGC Holdings, Mitsui OSK Lines First injection expected: Late 2029 to early 2030 Cross-border clients: Japan, Korea, Singapore CCS Bill: Passed and pending implementation Malaysia’s Window to Lead As countries enact carbon taxes and border adjustments, Malaysia’s CCS infrastructure — anchored by PETRONAS — offers both a climate solution and a strategic industrial edge in the race to net-zero.
“With the right partnerships, Malaysia can become the carbon storage powerhouse of ASEAN,” said Emry. “But we have to move fast — the window is open now.”
- TNS News