Shell New Ventures Malaysia and Petroliam Nasional Berhad have signed a Cooperation Agreement to jointly explore the development of Carbon Sequestration Hubs in Malaysia.
The agreement is for joint exploration and appraisal of geological formations as well as the development and operation of potential Carbon Sequestration Hubs offshore Sarawak for the provision of decarbonisation service to cross-border regional customers including Shell Group’s sourced molecules from Singapore and other global future opportunities, providing a mechanism for the joint deliberation of such potential projects.
“This Cooperation Agreement builds on the Joint Study and Collaboration Agreement signed previously with Petronas in 2021. It is an important milestone in maturing carbon capture and storage (CCS) as a commercially scalable decarbonisation solution for industries in Malaysia and beyond. We look forward to advancing our collaboration with PETRONAS to jointly develop reliable, technology-driven CCS solutions in Malaysia,” says Dato Ivan Tan, Chairman of Shell Malaysia.
CCS is especially important for heavy industries, such as those that produce steel, cement, or chemicals, or power stations that use hydrocarbons to generate electricity, where there are currently no scalable low-carbon alternatives. Shell’s target is to become a net-zero emissions energy business by 2050.
The oil company said its CCS strategy is a key pillar of its climate target with the ambition to have access to at least 25 million tonnes a year of CCS capacity by 2035.
