PETRONAS CCS Ventures, a wholly-owned subsidiary of PETRONAS has signed a Term Sheet with Mitsui O.S.K Lines, Ltd. (MOL) and MISC Berhad for the potential incorporation of a joint venture entity to invest in developing and monetising Liquefied Carbon Dioxide (LCO2) carriers for Carbon Capture and Storage projects in Malaysia. The parties have agreed in principle on the key commercial terms to allow progress to the next stage.
Building on the February 2022 Memorandum of Understanding signed with MOL and the four Approval in Principle for the conceptual design of the LCO2 carriers in June 2023, the Term Sheet marks another milestone for the positioning of CCS as a key lever in PETRONAS’ Net Zero Carbon Emissions by 2050 ambition.
The signing ceremony was attended by PETRONAS Executive Vice President and Chief Executive Officer of Upstream, Datuk Adif Zulkifli; PETRONAS Head of Carbon Management and Chief Executive Officer of PETRONAS CCS Ventures, Emry Hisham Yusoff, MOL Executive Vice President Executive Officer and Chief Operating Officer, Toshiaki Tanaka; and MISC President/Group Chief Executive Officer, Captain Rajalingam Subramaniam.
Speaking on behalf of PETRONAS, Adif said, “LCO2 carriers are integral to the CCS value chain to connect customers to carbon capture sites and storage locations. Our partnership with MOL and MISC is a powerful synergy of multiple expertise, abundant resources, and shared values. By combining our individual strengths, we will be able to facilitate the development and subsequently materialise the transportation of liquefied CO2 in a safe and sustainable manner.”
Rajalingam of MISC reiterated, “We are pleased to partner with PETRONAS and MOL in this strategic venture. It’s a perfect fit with our vision for a just transition, where responsible practices take center stage in managing societal emissions. As a future-focused shipowner, MISC is well-equipped to deliver the technical expertise required for LCO2 shipping, an essential link in the carbon capture and storage value chain. Again, our call to the maritime and other hard-to-abate industries is to collaborate and do just for the betterment of communities. Viable solutions to manage societal emissions are available.”
This partnership further reinforces PETRONAS commitment in establishing Malaysia’s potential as a prominent regional hub for CCS. In line with its strategic objectives, the Group actively collaborates with industry partners, taking deliberate actions to accelerate the development of a sustainable energy portfolio that prioritises responsible practices.