Under the JSCA, the two companies will perform an integrated CCS Area Development Plan study to support the decarbonisation ambitions of both parties within selected locations offshore Sarawak.
In a statement today, Petronas said the scope of the agreement included exploring the provision of decarbonisation service to Shell’s local and cross-border facilities, as well as to other potential regional customers.
"The outcome of the study will produce options in potential areas for further collaboration,” the national oil company said.
Signing the agreement on behalf of Petronas was its executive vice president and chief executive officer of upstream, Adif Zulkifli, while Shell was represented by its Malaysia chairman and senior vice president of upstream Malaysia, Ivan Tan.
"Petronas has a long-standing partnership with Shell. We are confident that this latest collaboration will inspire more innovation towards managing carbon emissions and advancing our shared ambition of delivering energy solutions in a responsible and sustainable manner.
"This collaboration underscores Petronas’ continuous efforts to explore partnership opportunities in CCS,” Adif said.
He said the company would continue this trajectory to unlock opportunities which could potentially help reduce emissions and achieve Petronas’ net zero carbon emissions aspirations.
"This is one of the many efforts to position and establish Malaysia as a leading CCS solutions hub in the region,” he added.
In November last year, Petronas signed a memorandum of understanding (MoU) with ExxonMobil Exploration and Production Malaysia Inc to explore opportunities in CCS technologies to support the decarbonisation of Malaysia’s upstream industry as well as to provide CO2 storage solutions for the region.
Meanwhile, in December 2021, an MoU was signed with Posco International Corporation and Posco Engineering & Construction Co Ltd to assess for opportunities to unlock CCS potential and identify suitable technology within the scope of carbon capture, transportation of CO2 and storage for potential application.
According to Petronas, it is taking deliberate steps to build a resilient and sustainable portfolio to support the transition towards lower carbon energy sources.
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. - Bernama