State-backed Malaysian energy company Petronas will jointly explore opportunities in carbon capture and storage (CCS) technologies with ExxonMobil (NYSE:XOM), to help decarbonise Malaysia’s upstream industry and provide storage solutions for Asia.
The pact with ExxonMobil is part of a flurry of agreements signed by Petronas this month. Yesterday, Technip Energies announced that it will also be working with Petronas to develop CCS technologies, as well as associated services and equipment, to reduce carbon emissions.
ExxonMobil and Petronas said they 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.
The pair will also share subsurface technical data to enable CO2 storage assessment and characterisation. Relevant data related to pipelines, facilities and wells will also be shared to evaluate potential reutilisation of existing infrastructure for transport and storage in selected locations.
ExxonMobil, which set up a low-carbon solutions division in February, is focusing on building a CCS business in Asia. Significantly, ExxonMobil believes there is over 300 billion tonnes of storage capacity in Southeast Asia alone. The supermajor has also teamed up with Indonesia’s Pertamina to assess CCS opportunities.
Petronas said it is taking deliberate steps to build a resilient and sustainable portfolio to support the transition towards low-to-zero carbon energy sources. These include developing, testing, and piloting a suite of technologies at its first offshore CCS project set for CO2 injection in 2025. Petronas said it is also pursuing more zero continuous flaring and venting of hydrocarbons to reduce emissions while continuing to reshape its portfolio mix for cleaner sources of energy.
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