Petronas Secures Land for Malaysia CCS Hub

Malaysia’s Petroliam Nasional Bhd (Petronas) has secured land to progress its Southern Carbon Capture and Storage (CCS) hub project in Pahang.

The company has secured the land through a rental agreement between its unit Petronas CCS Solutions Sdn Bhd (PCCSS) and Kuantan Port Consortium Sdn Bhd, it said in a press release.

The first injection at the hub is expected to take place by 2029. The company said the project will play a key role in reducing carbon emissions for hard-to-abate industries, both locally and internationally.

The hub's location suits an integrated CCS value chain and future growth, it said.

“As Malaysia rallies towards energy transition and net zero carbon emissions, the establishment of a CCS hub is timely to provide a decarbonization solution to industries such as steel, chemical, cement, power generation and petrochemical in Pahang. This hub, with its abundant storage capacity, also serves to connect all the industrial areas in the west of Peninsular Malaysia and the Asia Pacific that are embarking on decarbonization”, PCCSS Chief Executive Officer Nora’in Md Salleh said.

“Ultimately, this project signifies our strong commitment to Malaysia in rolling out the implementation of the National Energy Transition Roadmap”, she added.

Meanwhile, the land agreement also enables knowledge transfer between Petronas and Kuantan Port, which is involved in handling diverse cargo types and implementing modern logistics solutions.

Petronas said it is advancing CCS as a key solution to address emissions from its operations and other industries within the Asia Pacific. Forming strategic partnerships is Petronas' strategy for building a resilient and sustainable portfolio while accelerating its NZCE 2050 commitment pathway.

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