A land rental has been signed between PETRONAS’ subsidiary PETRONAS CCS Solutions Sdn Bhs (PCCSS) and Kuantan Port Consortium. This agreement will help the companies to develop and push forwards its plans for its Southern CCS hub, which is located in Malaysia, specifically Pahang.

It has already been planned that this hub will have its first injection by 2029 and from here, the hub will have a significant role in reducing carbon emissions for hard-to-abate industries. Furthermore, this plant will affect industries which are based both locally and internationally.  

On top of this, the agreement will also make it possible for knowledge to be transferred between PETRONAS and Kuantan Port. This will be hugely significant, as Kuantan Port has a strong track record when it comes to handling diverse cargo types, fostering regional trade growth, as well as implementing modern logistic solutions.

The company stated that, ‘the location of the hub is ideal for an integrated CCS value chain and future growth, and is expected to create new economic opportunities and benefits for the surrounding communities.’

PCCSS Chief Executive Officer, Nora’in Md Salleh, commented, “As Malaysia rallies towards energy transition and net zero carbon emissions, the establishment of a CCS hub is timely to provide a decarbonisation solution to industries such as steel, chemical, cement, power generation and petrochemical in Pahang. This hub, with its abundant storage capacity, also serves to connect all the industrial areas in the west of Peninsular Malaysia and the Asia Pacific that are embarking on decarbonisation. Ultimately, this project signifies our strong commitment to Malaysia in rolling-out the implementation of National Energy Transition Roadmap (NETR).”

PETRONAS said ‘it is advancing CCS as a key solution to address emissions from its operations and other industries within the Asia Pacific and continues to form strategic collaborations as part of its steps in building a resilient and sustainable portfolio while accelerating its NZCE 2050 commitment pathway.’