To achieve net-zero emissions by 2050, Malaysia is turning to a broad mix of decarbonisation strategies. While progress has been made in reducing operational emissions and expanding renewable energy, attention is now shifting to a crucial element: carbon dioxide (CO₂) removal.
Central to this effort is Carbon Capture and Storage (CCS) — a technology that captures CO₂ emissions at their source, then transports and stores them deep underground in geological formations. Malaysia’s depleted oil and gas fields, along with its suitable geological structures, make it a prime candidate for CCS, especially for decarbonising hard-to-abate sectors such as steel, cement, and power.
PETRONAS at the Forefront
National oil and gas company PETRONAS has made CCS a key pillar of its decarbonisation strategy, both domestically and across Asia. The company has identified four active CCS sites — M1, Duyong, Penyu, and Lawit — as part of seven potential locations nationwide, according to Emry Hisham Yusoff, Senior General Manager of Carbon Management at PETRONAS.
The M1 site, located offshore Sarawak, is the most advanced and will store CO₂ from the Kasawari gas field. The remaining three — Duyong, Penyu, and Lawit — are being developed to store emissions from non-oil and gas industries.
“We’re offering CCS as a solution to other sectors,” said Nor A’in Md Salleh, PETRONAS General Manager of Carbon Capture and Storage. “Their adoption of CCS can directly contribute to meeting Malaysia’s national climate targets.”
Regional Demand on the Rise
CCS demand is rapidly increasing across Asia. Japan alone is expected to need 120 million to 240 million tonnes of CO₂ storage annually. PETRONAS sees this as an opportunity to not only help the region decarbonise but also strengthen Malaysia’s energy security.
“Climate change doesn’t respect borders. Storing CO₂ in Malaysia benefits the entire region,” Emry noted.
Beyond Japan, PETRONAS is in discussions with potential partners in South Korea and Singapore who are exploring CO₂ storage options in Malaysia.
Backed by growing demand and geological advantages, PETRONAS plans to position Malaysia as a leading regional hub for cross-border carbon storage — supporting Asia’s broader transition to a low-carbon future.
