KUALA LUMPUR: Petroliam Nasional Bhd (PETRONAS) is looking to bring forward the first carbon dioxide (CO2) injection for its carbon capture and storage (CCS) project at the Kasawari gas field, offshore Sarawak, to 2027.
This is earlier than its previous projection of 2029 or 2030 and forms part of efforts to reduce the group’s carbon emissions footprint.
PETRONAS head of carbon management Emry Hisham Yusoff said the plan, which remains at an early stage of discussion, takes into account that the gas field began production in August 2024.
He said Kasawari was developed before PETRONAS formalised its net-zero carbon emissions commitment, resulting in a gap between production and carbon management planning.
“When Kasawari was being developed, PETRONAS had not yet made its carbon commitment.
“During the fabrication stage, we came up with our net-zero carbon emissions target and realised the field would emit CO2. So we need to address that.
“There is a gap between production and injection readiness, including identifying suitable fields for CO2 storage.
“Now that Kasawari is producing and emissions have begun, we are looking to expedite efforts to capture and inject the CO2 as soon as possible,” he said.
Emry Hisham told reporters this when asked about the CCS project on the sidelines of the Offshore Technology Conference Asia here yesterday.
He added that PETRONAS aimed to capture 3.3 million tonnes per annum of CO2 for injection under the CCS project.
The Kasawari gas field is set to integrate one of the largest offshore CCS projects globally to manage high CO2 levels, and has commenced operations at about 200 million cu ft per day, with plans to ramp up output to support liquefied natural gas supply.
Emry Hisham said PETRONAS is awaiting the final form of the National Climate Change Bill before assessing its full implications on the industry, including the implementation of climate obligations and carbon-related regulations.
Earlier in March, the Natural Resources and Environmental Sustainability Ministry said the bill is slated to be tabled in the second session of Parliament in June.
The bill is intended to serve as a dedicated climate legislation, establishing a legal framework for climate governance, emissions management, carbon market regulation, as well as reporting and compliance.
Emry Hisham also urged the government to expedite the finalisation of bilateral agreements between Malaysia and other countries to facilitate cross-border carbon movement for CCS projects.
He said Malaysia is currently in discussions with Singapore and Japan on potential collaboration, with talks with Singapore understood to be more advanced.
However, no agreement has been signed to date, although negotiations are ongoing and a bilateral agreement between the countries would be required before any formalisation.
Emry Hisham was a panellist at an industry session titled “Scaling decarbonisation and CCUS: Transforming offshore assets for sustainable energy production.”
At the session, he said policy and regulatory clarity remained key to unlocking CCS investments, noting that while Malaysia’s existing legal framework supports carbon injection within petroleum operations, it does not fully cover carbon capture from non-petroleum facilities such as energy or gas processing plants.
He said the Carbon Capture, Utilisation and Storage (CCUS) Bill 2025 was introduced to address this gap and enable CCS activities, including cross-border projects.
He added that bilateral agreements between governments are still required to facilitate carbon movement and ensure alignment with international frameworks.
Emry Hisham also said liability is a critical consideration, noting that under Malaysia’s framework, CCS developers are required to monitor and assume responsibility for storage sites for at least 10 years post-closure before applying for handover to the government, subject to regulatory approval and possible extension. —Bernama
