PETRONAS Acquires Land for Carbon Capture and Storage Hub in Peninsular Malaysia

Kuantan, 24 July 2024 – PETRONAS, through its subsidiary PETRONAS CCS Solutions Sdn Bhd (“PCCSS”), has signed a land rental agreement with Kuantan Port Consortium Sdn Bhd (“Kuantan Port”) to progress plans for its Southern Carbon Capture and Storage (CCS) hub in Pahang, Malaysia.

The hub is expected to have its first injection by 2029 and will play a key role in reducing carbon emissions for hard-to-abate industries locally and internationally. The location of the hub is ideal for an integrated CCS value chain and future growth, and is expected to create new economic opportunities and benefits for the surrounding communities.

“As Malaysia rallies towards energy transition and net zero carbon emissions, the establishment of a CCS hub is timely to provide a decarbonisation solution to industries such as steel, chemical, cement, power generation and petrochemical in Pahang. This hub, with its abundant storage capacity, also serves to connect all the industrial areas in the west of Peninsular Malaysia and the Asia Pacific that are embarking on decarbonisation,” said PCCSS Chief Executive Officer, Nora’in Md Salleh.

“Ultimately, this project signifies our strong commitment to Malaysia in rolling-out the implementation of National Energy Transition Roadmap (NETR),” she added.

Furthermore, this strategic move enables for knowledge transfer between PETRONAS and Kuantan Port, which has a strong track record in handling diverse cargo types, fostering regional trade growth, and implementing modern logistics solutions.

PETRONAS is advancing CCS as a key solution to address emissions from its operations and other industries within the Asia Pacific. PETRONAS continues to form strategic collaborations as part of its deliberate steps in building a resilient and sustainable portfolio while accelerating its NZCE 2050 commitment pathway.