KUALA LUMPUR (Dec 12): State-owned oil and gas company Petroleum Sarawak Bhd (Petros) signed a memorandum of understanding with South Korean steel-making company Posco Group to collaborate in the development of carbon capture and storage (CCS) business in Sarawak.
Petros, as the resource manager for the CCS business in Sarawak, inked the collaboration agreement on Monday (Dec 12) with Posco Holdings Inc, Posco International Corporation and Posco Engineering & Construction Co Ltd.
In a statement, Petros said the four companies will conduct a joint study of potential carbon storage sites in Sarawak, as well as transportation of carbon dioxide from South Korea to the CCS hub in the state.
They will also study carbon dioxide injection and sequestration, solutions to reduce, mitigate and/or avoid greenhouse gas emissions arising from the CCS opportunities, and assess the technical and commercial feasibility of the CCS business, said Petros.
At Monday's signing ceremony held at Wisma Bapa Malaysia in Kuching that was witnessed by Sarawak Premier Tan Sri Abang Johari Tun Openg, Posco Group was represented by executive vice-president and Posco Holdings head of hydrogen business Cho Ju-Ik.
“Posco International has abundant experiences in exploration and production of overseas oil and gas fields, and Posco Engineering & Construction has already completed an in-depth study of carbon dioxide facilities, so we are confident to accelerate our carbon neutrality by means of gathering group-level abilities,” Cho said.
Meanwhile, Petros was represented by chairman Tan Sri Datuk Amar Hamid Bugo, group chief executive officer Janin Girie and acting senior vice-president of Sarawak resources management Anyi Ngau.
“Our premier previously mentioned that CCS is a key enabler to achieve net zero by 2050. Sarawak is blessed with geological structures that are suitable to store carbon dioxide, therefore enabling us the potential to deal with CCS at a global scale,” said Anyi.
Sarawak Deputy Minister for Energy and Environmental Sustainability Dr Hazland Abang Hipni, Sarawak state secretary Datuk Amar Mohamad Abu Bakar Marzuki and state financial secretary Datuk Seri Dr Wan Lizozman Wan Omar were also present at the event.
Petros highlighted that the CCS industry aims to promote the development of Sarawak’s massive sour gas reserves, which contain carbon dioxide.
The company said the CCS business would enable Sarawak to ensure its long-term energy security, provide more local jobs in the green industry, and provide an additional revenue source to the state.
The Sarawak Land Code was recently updated to include the legislation regulating new CCS business opportunities, with the CCS sites being part of the state land belonging to Sarawak.