Malaysia Energy Carbon Capture and Storage

Geological study of the ASEAN region pinpoints Malaysia’s offshore areas as offering high potential for carbon dioxide (CO2) storage in the region. Industry experts believe underground rock formations thousands of feet below the surface offer safe and permanent sequestration of CO2 captured from industrial processes. The government of Malaysia, through its national oil & gas company PETRONAS, intends to capitalize on its depleted offshore oilfields to position Malaysia as an international storage hub for clients who have captured carbon and require a sequestration site.

PETRONAS views the development of CCS value chains as a new source of growth for its business, serving domestic and international industrial customers. The company is currently developing a MYR4.5 bil (US$ 1 bil) mega CCS project in the Kasawari gas field off the coast of Sarawak, on Malaysian Borneo. Upon completion in 2026, the Kasawari plant will reduce 3.3 metric tonnes of CO2 emitted annually, making it one of the largest offshore CCS projects in the world. Estimates place Malaysia’s total offshore CO2 storage potential at 500 metric tonnes, presenting the possibility for the development of more projects like Kasawari. 

Commercial-scale deployment of CCS could create a new industry for Malaysia, spurring economic growth and job creation. Although progress in this area is slowed down by an underdeveloped regulatory framework, PETRONAS and its partners are advocating for regulations and policy development that will enable CCS projects.

If you represent a U.S. company with relevant technology or expertise keen to explore CCS opportunities in Malaysia, please get in touch with Commercial Specialist Mohan Gurusamy at office.kualalumpur@trade.gov.