A joint venture has been awarded Malaysia's first offshore assessment permit for carbon capture and storage (CCS). The permit was granted by the Malaysia Carbon Capture, Utilisation & Storage (MyCCUS) Agency to Petronas CCS Ventures (PCCSV), a wholly owned subsidiary of Petronas, for the Duyong area.

Significance of the Permit

This is the inaugural permit issued under Malaysia's newly enacted Carbon Capture, Utilisation & Storage Act, which came into force on 1 October, representing a historic milestone for the nation's energy sector. The permit grants the partners exclusive rights to conduct comprehensive offshore geological assessments over the Duyong field, located offshore Peninsular Malaysia.

Project Collaboration and Development

The permit enables the ongoing collaboration between PCCSV, TotalEnergies, and Mitsui & Co. to advance technical studies and evaluations. This partnership operates under the July 2025 Key Principles Agreement (KPA), which is part of the broader Southern CCS offshore hub development. The KPA allows the co-venturers to lay the foundation for the front-end engineering design (FEED) phase, paving the way for the first-of-its-kind integrated CCS solution for industries in the Asia Pacific region.

Regulatory Compliance and Objectives

All assessment activities will be conducted in full compliance with the CCUS Act 2025 and its Offshore Permit and Licensing Regulations 2025, adhering to national laws and relevant guidelines. The primary objective is to determine the technical and commercial feasibility of the Duyong area as a safe and commercially viable carbon dioxide (CO2) storage site.

Strategic Implications and Commitments

The permit issuance is a critical milestone that reinforces Petronas' commitment to reducing emissions and offering decarbonisation solutions to its customers and partners. It represents a pivotal step in building Malaysia's CCS industry, positioning the nation as a regional leader in cross-border CO2 collaboration and responsible energy transition. This achievement underscores Petronas' leadership in lower-carbon technologies and its commitment, through PCCSV, to advance CCS as a key pathway toward achieving Net Zero by 2050, thereby supporting regional and global climate goals.

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Amanda Battersby. All rights to the original text and images remain with their respective rights holders.