KUALA LUMPUR: Development of a carbon capture and storage (CCS) hub in Kerteh, Terengganu, will be carried out in phases as the Government assesses the region's potential for carbon storage and related industries.
Economy Minister Akmal Nasrullah Mohd Nasir said a study on the development of a CCUS industrial cluster along the East Coast was expected to be completed by the fourth quarter of 2027.
He said the study would examine opportunities across the carbon capture, utilisation and storage (CCUS) value chain, including the potential economic benefits for Terengganu and other East Coast states.
“We will also involve the state government in discussions to obtain its views and determine how the development plans can be strategically formulated,” he said during question time in the Dewan Rakyat on Thursday (Nov 12).
He was responding to Datuk Ahmad Amzad Hashim (PN-Kuala Terengganu), who asked about Federal Government support for the proposed Northern Hub in Kerteh, including opportunities for state-linked companies, local businesses and workers to participate.
The Economy Ministry said PETRONAS had identified the offshore Lawit field as having potential for carbon dioxide storage.
However, as the field was expected to continue producing gas beyond 2035, infrastructure development and storage capacity for the Kerteh hub would be planned in phases based on technical and commercial readiness.
“The initial development of Malaysia's CCS hubs will focus on Kuantan, although industries in Terengganu could participate in the value chain and benefit from the project,” he said.
He also said the Government was conducting a pilot carbon capture project in the iron and steel industry in Kemaman to establish a baseline for assessing the potential of CCUS technology in reducing industrial emissions.
“The Malaysia CCUS Roadmap 2050: Towards Green Economy was expected to be launched at the end of November,” he said.
The roadmap would outline the phased development of the country's CCUS industry towards 2050.
Separately, responding to Richard Rapu (GPS-Betong), Akmal said discussions were needed with Sarawak to avoid overlapping regulations and uncertainty for investors, particularly involving the import of carbon dioxide for storage.
He said the Carbon Capture, Utilisation and Storage Act 2025 (Act 870) applied to Peninsular Malaysia and Labuan, while Sarawak had its own legal framework.
“Any arrangements, including those with countries such as Japan, South Korea and Singapore, must take into account national interests and ensure there is no overlap or loss to the country,” he said.
