PETRONAS and POSCO Collaborate on Carbon Capture and Storage Value Chain

KUALA LUMPUR, 17 December 2021 – PETRONAS signed a Memorandum of Understanding (MoU) with POSCO International Corporation and POSCO Engineering & Construction Co. Ltd to jointly explore opportunities in carbon capture and storage (CCS) technologies as well as carbon dioxide (CO2) storage solutions in Malaysia.

Both parties will assess opportunities to unlock CCS potential and identify suitable technology within the scope of carbon capture, transportation of CO2 and storage for potential application.

PETRONAS was represented by Executive Vice President and Chief Executive Officer of Upstream, Adif Zulkifli, while POSCO International Corporation was represented by Vice President, Head of Energy Business Division, Hwang Euy-Yong. Signing on behalf of POSCO Engineering & Construction Co. Ltd was Vice President, Head of Plant Business Office, Lee Gyu Chul.

Adif said, “Given the multiple business adjacencies between PETRONAS and POSCO, we are delighted to collaborate in unlocking the opportunities and potential of CCS. This is one of the many efforts to establish Malaysia as a leading CCS solutions hub in the region. POSCO is the largest steel manufacturer in Korea and this collaboration will allow PETRONAS to leverage on POSCO’s experience especially in carbon capture and transportation.”

Under the MoU, PETRONAS and POSCO will collaborate and perform technical maturation activities to unlock CCS potential in Malaysia.

PETRONAS is taking deliberate steps to build a resilient and sustainable portfolio to support the transition towards lower carbon energy sources, including evaluating the application of technology towards lowering emissions across the value chain which will encompass carbon capture, transport and storage. 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.