Petronas, Vopak to explore CCS value chain development

Malaysian state-owned oil and gas firm Petronas has signed an initial agreement with Dutch bulk liquid and gas storage firm Vopak to explore the development of a value chain for carbon capture and storage (CCS) in southeast Asia.

Both firms agreed to jointly study the development of a CCS value chain, which includes transporting carbon dioxide (CO2) from a Vopak terminal and potentially injecting it into regional storage hubs developed by Petronas. The study will focus on the CO2 emitted by industries in Singapore. Aggregating CO2 emissions from various emitters in southeast Asia is also part of the feasibility study.

Both firms intend to invest in the development of CCS value chain solutions.

Petronas has been exploring the feasibility of CCS with other foreign firms and the possibility of utilising its depleted oil and gas reservoirs in Malaysia. Petronas has storage capacity of about 46 trillion ft³ (1.38bn m³) just from depleted gas reservoirs, according to the firm. It is looking at CCS as a tool to monetise its high CO2 resources by also offering storage sites to others.

Petronas in August signed an agreement with five other South Korean companies to develop a cross-border CCS project. It has also partnered with Japanese trading house Mitsui to explore the development of a CCS value chain.

These initiatives are also in line with the country's ambition to become a carbon neutral country as early as 2050.

By Ryan Ang