Petroliam Nasional Bhd’s (Petronas) wholly-owned subsidiary, Petronas CCS Ventures Sdn Bhd, has signed a term sheet with Mitsui O.S.K Lines, Ltd. (MOL) and MISC Bhd to potentially establish a joint venture entity aimed at investing in the development and utilisation of liquefied carbon dioxide (LCO2) carriers for carbon capture and storage (CCS) projects in Malaysia.
In a statement, Petronas said the parties have reached an agreement on key commercial terms, marking a significant step forward.
The development follows the February 2022 memorandum of understanding (MoU) with MOL and the approval in principle (AiP) for the conceptual design of LCO2 carriers in June 2023.
The term sheet underscores Petronas’ commitment to CCS as a vital component of its net zero carbon emissions by 2050 initiative.
Petronas executive vice-president and chief executive officer of upstream Datuk Adif Zulkifli said LCO2 carriers are integral to the CCS value chain to connect customers to carbon capture sites and storage locations.
“Our partnership with MOL and MISC is a powerful synergy of multiple expertise, abundant resources, and shared values.
“By combining our individual strengths, we will be able to facilitate the development, and subsequently materialise the transportation of liquefied CO2 in a safe and sustainable manner,” he said in a statement on Friday.
Meanwhile, MISC president and group CEO Captain Rajalingam Subramaniam said the company is pleased to partner with Petronas and MOL in this strategic venture, which he considers a perfect fit with MISC’s advocacy for a just transition, where responsible practices take the centre stage in managing societal emissions.
“As a future-focused shipowner, MISC is well equipped to deliver the technical expertise required for LCO2 shipping, a crucial link in the carbon capture and storage value chain.
“Our call to the maritime and other hard-to-abate industries is to collaborate for the betterment of everyone through viable solutions that are available,” he said.
Petronas said the partnership further reinforces its commitment to establishing Malaysia’s potential as a prominent regional hub for CCS.
In line with its strategic objectives, the group actively collaborates with industry partners, taking deliberate actions to accelerate the development of a sustainable energy portfolio that prioritises responsible practices, it said. –TMR