CCS Cluster and Hub Development in Malaysia

Malaysia takes the lead in Cluster and Hub Carbon Capture and Storage implementation in Asia. CCS is one of the technologies that has been chosen as part of the efforts to meet Malaysia’s net zero emission target by 2050. Malaysia plans to develop a cluster and hub that will take the benefit of collective transport and storage infrastructure to bring economies of scale in construction and operations, bring down the costs of carbon capture, and also reduce risk. Under Malaysia’s National Energy Transition Roadmap issued in August 2023, the CCS hub will be implemented gradually. By 2030, three CCS hubs are expected to be onstream, capable of storing 15 MTPA of CO2. An additional CCS hub will be developed by 2040 with a target to achieve a cumulative storage capacity of 40 MTPA. By 2050 additional two CCS hubs are projected to be onstream, making the accumulated storage capacity of CO2 in the nation to reach 80 MTPA.

 

Guided by the road map, the Government of Malaysia, Petronas, and Petros developed detailed action plans.  The first three CCS clusters and hubs to be developed in the first stage of hub development in the National Energy Transition Road are clusters and hubs near the main Ports of Kerteh, Kuantan, Bintulu, and their adjacent offshore permanent storages, including either depleted oil and gas reservoir or saline aquifer.  

 

The conceptual engineering design for the Kerteh cluster and hub, which includes the pre-FEED (pre-front-end engineering design) stage has been completed. In Petronas Media release on 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.

 

Petroleum Sarawak Berhad (Petros) launched the Sarawak Bid Round (SBR) 2024 in July, offered three sites for CCS hub development.  The first site offered is a saline aquifer in the Southwest and Western Luconia province, which will be the centre of energy growth supporting the establishment of Kuching Economic Hub. It will enable sour gas fields development and decarbonization of new industries in Kuching as well as existing local emissions and emissions from overseas.

 

The second site comprises several depleted fields nearing the end of their field life in the Balingian province – this site’s proximity to shore aligns with the potential development of a new onshore gas plant.

 

The third site consists of saline aquifers and depleted fields in the Central Luconia province, including high-quality reservoirs and existing oil & gas infrastructure, with potential nearby sour gas field development offering integrated development opportunities.

 

The bidding process opened on 24 July 2024, and the prospective investors were invited to conduct a data review and submit the bidding by 24 November 2024. Evaluation will be conducted in early 2025, and the winner of the site's bidders will be announced on 4 April 2025.

 

Malaysia cluster and hub CCS plan has attracted neighboring countries in Asia especially Japan and Korea to store CO2 in the current hub developed by Malaysia. Three of nine advanced CCS projects announced by the Japanese government for the fiscal year 2024 aimed to store CO2 in Malaysian facilities. The design concept and related activities needed to be able to start injection by 2030 will be conducted with full support from Japan Energy and Metals National Corporation (JOGMEC). The final investment decision expected will be made during fiscal year 2026.

 

The first project eyed by the Japanese Government is the Malaysia Northern Peninsula Carbon Capture and Storage Project which will inject emissions from multiple industries including steel, chemicals, oil refining, etc. in the Tokyo Bay coastal industrial complex. The project uses a depleted oil and gas reservoir in the Northeast offshore Malay Peninsula expected will be able to store 3 MTPA CO2.

Malaysia takes the lead in Cluster and Hub Carbon Capture and Storage implementation in Asia. CCS is one of the technologies that has been chosen as part of the efforts to meet Malaysia’s net zero emission target by 2050. Malaysia plans to develop a cluster and hub that will take the benefit of collective transport and storage infrastructure to bring economies of scale in construction and operations, bring down the costs of carbon capture, and also reduce risk. Under Malaysia’s National Energy Transition Roadmap issued in August 2023, the CCS hub will be implemented gradually. By 2030, three CCS hubs are expected to be onstream, capable of storing 15 MTPA of CO2. An additional CCS hub will be developed by 2040 with a target to achieve a cumulative storage capacity of 40 MTPA. By 2050 additional two CCS hubs are projected to be onstream, making the accumulated storage capacity of CO2 in the nation to reach 80 MTPA.

 

Guided by the road map, the Government of Malaysia, Petronas, and Petros developed detailed action plans.  The first three CCS clusters and hubs to be developed in the first stage of hub development in the National Energy Transition Road are clusters and hubs near the main Ports of Kerteh, Kuantan, Bintulu, and their adjacent offshore permanent storages, including either depleted oil and gas reservoir or saline aquifer.  

 

The conceptual engineering design for the Kerteh cluster and hub, which includes the pre-FEED (pre-front-end engineering design) stage has been completed. In Petronas Media release on 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.

 

Petroleum Sarawak Berhad (Petros) launched the Sarawak Bid Round (SBR) 2024 in July, offered three sites for CCS hub development.  The first site offered is a saline aquifer in the Southwest and Western Luconia province, which will be the centre of energy growth supporting the establishment of Kuching Economic Hub. It will enable sour gas fields development and decarbonization of new industries in Kuching as well as existing local emissions and emissions from overseas.

 

The second site comprises several depleted fields nearing the end of their field life in the Balingian province – this site’s proximity to shore aligns with the potential development of a new onshore gas plant.

 

The third site consists of saline aquifers and depleted fields in the Central Luconia province, including high-quality reservoirs and existing oil & gas infrastructure, with potential nearby sour gas field development offering integrated development opportunities.

 

The bidding process opened on 24 July 2024, and the prospective investors were invited to conduct a data review and submit the bidding by 24 November 2024. Evaluation will be conducted in early 2025, and the winner of the site's bidders will be announced on 4 April 2025.

 

Malaysia cluster and hub CCS plan has attracted neighboring countries in Asia especially Japan and Korea to store CO2 in the current hub developed by Malaysia. Three of nine advanced CCS projects announced by the Japanese government for the fiscal year 2024 aimed to store CO2 in Malaysian facilities. The design concept and related activities needed to be able to start injection by 2030 will be conducted with full support from Japan Energy and Metals National Corporation (JOGMEC). The final investment decision expected will be made during fiscal year 2026.

 

The first project eyed by the Japanese Government is the Malaysia Northern Peninsula Carbon Capture and Storage Project which will inject emissions from multiple industries including steel, chemicals, oil refining, etc. in the Tokyo Bay coastal industrial complex. The project uses a depleted oil and gas reservoir in the Northeast offshore Malay Peninsula expected will be able to store 3 MTPA CO2.