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January 11, 2022updated 12 Jan 2022 10:55am

Shell enters partnership with Malaysia for CCS exploration

The collaboration comes as part of Malaysian oil firm Petronas’ business plan to achieve net- zero emissions by 2050.

By Scarlett Evans

A subsidiary of Royal Dutch Shell has entered into a collaboration with Malaysia’s state-run oil firm Petroliam Nasional Berhad (Petronas) to explore carbon capture and storage (CCS) options in the region. 

In a press release, Adif Zulkifli, Petronas’ executive vice president said: “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. 

“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.” 

Under the collaboration, the two firms will conduct a CCS area development plan study in several offshore locations in the Malaysian state of Sarawak. 

In a statement, Petronas said that the partnership will also explore providing decarbonisation services to Shell’s local and cross-border facilities, as well as other potential customers in the region.  

This is not Petronas’ first foray into CCS, with the group planning the launch of its Kasawari CCS project – described by the group as one of the largest in the world. The Malaysian operator has already opened up bidding for the front-end engineering and design work for the project, which will capture CO2 from the gas field and inject it into an abandoned offshore reservoir.  

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The first injection is planned for 2025 and, once fully operational, the scheme is expected to reduce carbon volumes at the site by 3.7 million tonnes annually – tallying up to 76 million tonnes over the entire lifecycle of the field.  

The development of CCS, in addition to the company’s pursuit of zero continuous flaring and venting of hydrocarbons, is in aid of its mission to reach net zero emissions by 2050.  

Companies are increasingly turning to CCS as a means of achieving emissions reduction targets, with a number of projects in operation around the world to develop and explore this technology.  

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