BMI, a research unit of Fitch Solutions, has reported that Malaysia is eyeing stranded high-carbon-dioxide (CO2) gas fields for development to bolster its long-term natural gas production goals.
According to BMI’s note on Thursday, the country possesses a substantial number of untapped high-CO2 gas fields, including the recently awarded BIGST cluster and the significant K5 gas field offshore Sarawak.
The K5 gas field, discovered in 1970, holds an estimated 21 trillion cubic feet of gas, with 50% CO2 content.
Despite challenges, such as processing difficulties and environmental concerns associated with “sour gas,” Petronas has committed US$1 billion to develop the K5 field, following TotalEnergies’ withdrawal from the project in 2014.
Malaysia’s push to exploit these resources comes amidst declining reserves and challenges in overseas projects, prompting Petronas to increase investments in extracting harder-to-reach resources domestically and abroad.
While BMI warns of uncertainties surrounding the development of new discoveries, the incentives to tap into stranded oil and gas reserves remain high amid soaring oil-and-gas prices and government targets to produce two million barrels of oil equivalent per day by 2025 and beyond.
With Brent crude prices rising by 9% this year and currently hovering around US$84 per barrel, Malaysia’s focus on harnessing stranded gas fields underscores its commitment to ensuring energy security and meeting growing demand in the future.
