PETRONAS, Shell to collaborate on CCS projects
Both the companies will perform an integrated CCS Area Development Plan study to support the decarbonisation ambitions of both parties within selected locations offshore Sarawak
PETRONAS has signed a joint study and collaboration agreement (JSCA) with Sarawak Shell Berhad (Shell) to explore opportunities and project collaborations in carbon capture and storage (CCS) to help provide carbon dioxide storage solutions in Malaysia and the region.
Under the JSCA, PETRONAS and Shell will perform an integrated CCS Area Development Plan study to support the decarbonisation ambitions of both parties within selected locations offshore Sarawak.
The scope of the agreement includes exploring the provision of decarbonisation service to Shell’s local and cross-border facilities, as well as to other potential regional customers. The outcome of the study will produce options in potential areas for further collaboration.
The agreement was signed by Adif Zulkifli, PETRONAS Executive Vice President and Chief Executive Officer of Upstream and Ivan Tan, Shell Malaysia Chairman and Senior Vice President of Upstream Malaysia.
“PETRONAS has a long-standing partnership with Shell. 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," said Adif.
“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,” added Adif.
PETRONAS is taking deliberate steps to build a resilient and sustainable portfolio to support the transition towards lower carbon energy sources. The company is also pursuing more zero continuous flaring and venting of hydrocarbons to reduce emissions aligned with its aspiration to achieve Net Zero Carbon Emissions by 2050.