Petronas and Shell in CCS Collaboration

Petronas and Shell in CCS Collaboration
Petronas has signed a joint study and collaboration agreement with Sarawak Shell Berhad.

Petronas has announced that it has signed a joint study and collaboration agreement (JSCA) with Sarawak Shell Berhad to explore opportunities and project collaborations in carbon capture and storage (CCS) to help provide CO2 storage solutions in Malaysia. 

As part of the JSCA, the company said it and Shell will perform an integrated CCS area development plan study to support the decarbonization ambitions of both parties within selected locations offshore Sarawak. The scope of the agreement includes exploring the provision of decarbonization service to Shell’s local and cross-border facilities, as well as to other potential regional customers, Petronas noted, adding that the outcome of the study will produce options in potential areas for further collaboration. 

“Petronas has a long-standing partnership with Shell,” Adif Zulkifli, Petronas’ executive vice president and chief executive officer of upstream, said in a company statement.

“We are confident that this latest collaboration will inspire more innovation towards managing carbon emissions and advancing our shared ambition of delivering energy solutions in a responsible and sustainable manner,” Zulkifli added in the statement.

“This collaboration underscores Petronas’ continuous efforts to explore partnership opportunities in CCS. We will continue this trajectory to unlock opportunities which could potentially help reduce emissions and achieve our net zero carbon emissions aspirations. This is one of the many efforts to position and establish Malaysia as a leading CCS solutions hub in the region,” Zulkifli went on to say.

Last month, Petronas revealed that it had signed a memorandum of understanding (MOU) with POSCO International Corporation and POSCO Engineering & Construction Co. Ltd to jointly explore opportunities in CCS technologies as well as CO2 storage solutions in Malaysia.

In November 2021, Petronas announced that it had signed an MOU with ExxonMobil Exploration and Production Malaysia Inc. to jointly explore opportunities in CCS technologies to help decarbonize Malaysia’s upstream industry and provide CO2 storage solutions for the region. Under the terms of the MOU, both parties will assess the viability of potential CCS projects in selected locations offshore Peninsular Malaysia and identify suitable technology within the scope of carbon capture, transport and storage for potential application, Petronas noted in a company statement at the time.

Petronas has highlighted that it is taking deliberate steps to build a resilient and sustainable portfolio to support the transition towards lower carbon energy sources. The company announced its aspiration to achieve net zero carbon emissions by 2050 in November 2020.

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