ADNOC, Petronas and Storegga have signed a Joint Study and Development Agreement (JSDA) to assess carbon dioxide (CO2) storage in saline aquifers and develop carbon capture and storage (CCS) facilities in the Penyu basin, offshore Peninsular Malaysia.
The agreement aims to establish at least 5 million tonnes per annum (mtpa) of CO2 capture and storage capacity by 2030. The project’s scope includes a CO2 shipping and logistics study, geophysical and geomechanical modelling, reservoir simulation, and containment research. It also explores the use of advanced technologies, including artificial intelligence (AI), to improve storage capacity.
Malaysia’s National Energy Transition Roadmap (NETR) identifies CCS as a key component of the country’s energy transition strategy. The Malaysian Government plans to introduce a standalone CCUS bill by the end of 2024. The JSDA supports the Malaysia-UAE Joint Committee for Cooperation (JCC) framework, reinforcing Petronas’ relationship with ADNOC.
The Penyu basin’s deep saline aquifers present opportunities for large-scale, permanent CO2 storage solutions. The JSDA is expected to accelerate regional CCS deployment and strengthen partner collaboration. The success of this initiative could establish a regional CCS hub for both domestic and international emitters.
ADNOC targets a carbon capture capacity of 10 mtpa by 2030. Storegga CEO Tim Stedman noted the partnership’s potential to create a world-class CCS hub and advance industrial decarbonisation efforts.
Activities under the JSDA are set to begin later this year.
