PETROS, PETRONAS, and Japanese Consortium Parties Sign Landmark Storage Site Agreement

Kuala Lumpur, 29 February 2024 – Petroleum Sarawak Berhad (PETROS), PETRONAS, through its subsidiary - CCS Ventures Sdn Bhd (PETRONAS CCS Ventures), and Japanese Consortium Parties comprising Japan Petroleum Exploration Co., Ltd. (JAPEX), JGC Holdings Corporation (JGC) and Kawasaki Kisen Kaisha, Ltd. (“K”LINE) signed a Storage Site Agreement (SSA) for the M3 depleted field offshore Sarawak, Malaysia, on 26 February 2024.

The SSA not only enables the feasibility studies of the CO₂ storage sites starting with the M3 depleted field (M3 CCS Project), but also the planning of relevant CO₂ storage site development, including onshore terminals and transportation pipelines, as well as assessment of its techno-commercial feasibility. 

This collaboration represents a significant advancement in the effort to reduce greenhouse gas emissions in the Asia Pacific (APAC) region, including Malaysia and Japan.  

The signatories of the SSA were PETROS Senior Vice President, Sarawak Resource Management Nazrin Banu Shaikh S. Ahmad; PETRONAS CCS Ventures Chief Executive Officer Emry Hisham Yusoff; JAPEX Managing Executive Officer and President of Overseas Business Division II, YAMADA Tomomi; JGC Senior Executive Officer, Technology Commercialization Officer, AIKA Masahiro; and ”K”LINE Managing Executive Officer, Carbon-Neutral Promotion, KANAMORI Satoshi.

Nazrin said, “As the Resource Manager for Carbon Capture, Utilisation and Storage (CCUS) in Sarawak, this step forward signifies our commitment as Sarawak’s economic growth engine leveraging on CCUS as an enabler. This is the first project for the industry and the impetus to more low-carbon solution projects. We are pleased to share our commitment to Sarawak with PETRONAS and the Japanese Consortium who are participating with us in this CCUS project.”

Emry said, “This collaboration is not just a strategic move to unlock potential CCS opportunities in Sarawak but necessary in addressing climate change as a collective action in achieving a low-carbon future. By securely storing captured CO₂ underground, CCS plays a pivotal role in decarbonising key industries, and it is hoped that this milestone will set an impetus for other CCS initiatives within Malaysia.”

YAMADA, representing the Japanese Consortium Parties said, “We are very proud to work with PETRONAS CCS Ventures and PETROS for this epochal project and believe that expertise of each company can make great contribution for realizing the CCS value chain centered on Sarawak aiming at the decarbonisation of the APAC region, including Japan.”