Petroliam Nasional Bhd (Petronas) has received regulatory approval for a permit to evaluate the potential of the Duyong field offshore Peninsular Malaysia for the storage of captured carbon dioxide emissions.
“This is the first permit issued under the newly enacted Carbon Capture, Utilization and Storage Act [Act 870] (CCUS Act 2025) enforced on 1 October 2025, marking a historic milestone for Malaysia’s energy sector”, the state-owned energy company said in a press release.
The permit allows Petronas, Mitsui & Co Ltd and TotalEnergies SE to conduct “comprehensive offshore geological assessments” at Duyong, part of the planned offshore Southern CCS hub, under a “key principles agreement” (KPA) signed July, Petronas said.
“The KPA enables PCCSV [Petronas CCS Ventures Sdn Bhd], TotalEnergies and Mitsui to lay the foundation for the front-end engineering design phase for the Duyong area”, Petronas added. “This partnership paves the way for the first-of-its-kind integrated CCS solution for industries in the Asia Pacific region.
“The permit issuance marks a pivotal step in building Malaysia’s carbon capture and storage industry, positioning the nation as a regional leader in cross-border CO2 collaboration and responsible energy transition”, Petronas said.
Last year Petronas secured a land lease in Pahang state from Kuantan Port Consortium Sdn Bhd for the Southern CCS project.
“The hub is expected to have its first injection by 2029 and will play a key role in reducing carbon emissions for hard-to-abate industries locally and internationally”, Petronas said in a statement July 24, 2024, announcing the land rental agreement.
“The location of the hub is ideal for an integrated CCS value chain and future growth, and is expected to create new economic opportunities and benefits for the surrounding communities”.
Also last year Petronas signed an agreement with Abu Dhabi National Oil Co PJSC (ADNOC) and Storegga to collaborate on a potential carbon capture and storage (CCS) project with a capacity of at least five million metric tons per annum in Malaysia.
The “joint study and development agreement” will evaluate the capability of saline aquifers to store CO2 emissions, with a view to building a CCS facility in the Penyu Basin offshore Peninsular Malaysia.
The scope of the pact also includes “a CO2 shipping and logistics study, geophysical and geomechanical modeling, reservoir simulation and containment research while exploring the application of advanced technologies, including artificial intelligence, to enhance storage capacity”, a joint statement said August 20, 2024.
“Malaysia’s geological abundance of deep saline aquifer reservoirs should allow for the development of large-scale, permanent CO2 storage solutions and the agreement will significantly accelerate regional CCS deployment, while strengthening collaboration between the strategic partners”, the statement said. “The success of this initiative will lay the foundations for a regional CCS hub serving both domestic and international emitters”.
The Southeast Asian country has identified CCS as one of the solutions toward achieving the national goal of net-zero emissions as early as 2050. The National Energy Transition Roadmap (NETR), released 2023, set goals of 15 MMtpa of CO2 storage capacity by 2030, 40 MMtpa by 2040 and 80 MMtpa by 2050. Petronas is part of the NETR Committee.
To contact the author, email jov.onsat@rigzone.com
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