Which four Malaysian states are eyed for CCUS industry leadership?

Question

Accepted Answer

Terengganu, Pahang, Sabah, and Sarawak are identified as potential leaders for the CCUS industry.

The Malaysian government has pinpointed Terengganu, Pahang, Sabah, and Sarawak as key states poised to lead the development of the carbon capture, utilisation, and storage (CCUS) industry. This strategic selection is based on the presence of essential infrastructure within these states, specifically decommissioned oil wells and existing terminal facilities that are suitable for CCUS operations. The Ministry is actively collaborating with these four states to ensure the seamless integration and execution of CCUS initiatives, with the timeline for project commencement contingent upon their respective commercial readiness.
Infrastructure Suitability Drives State Selection

The identification of Terengganu, Pahang, Sabah, and Sarawak as potential hubs for CCUS leadership stems from their existing geological and industrial assets. These states possess decommissioned oil wells, which can be repurposed for CO2 storage, and established terminal facilities. For instance, Terengganu's offshore oil wells and the Kerteh terminal facilities present a strong case for its significant potential in this sector. This existing infrastructure reduces the upfront investment and logistical challenges associated with developing new CCUS sites.
Economic Benefits and Investment Potential of CCUS

The CCUS industry is recognised as a high-impact sector with substantial economic benefits, as highlighted by its inclusion as a pilot project in the National Energy Transition Roadmap. The investment required for a fully operational CCUS facility, encompassing terminals and offshore components, is estimated to be around RM20 billion. This significant capital outlay presents a considerable opportunity for economic growth, job creation, and the development of new heavy industries, particularly in states like Terengganu where Kerteh's potential can be expanded beyond its current petrochemical and oil-based activities.
Government Facilitation and Legislative Framework

To support the burgeoning CCUS industry, the Malaysian government is in the final stages of preparing a CCUS-related Bill, slated for tabling in Parliament in November. This legislative framework is crucial for providing clarity and regulatory certainty for industry operators and investors. Beyond legislation, both the Federal and state governments will play a pivotal role as facilitators, acting as intermediaries between CCUS industry operators, such as Petronas, and potential customers, including foreign investors.
State-Level Partnerships and Industry Engagement

In anticipation of the CCUS industry's development, state governments are proactively engaging with key industry players. The Terengganu state government, for example, has initiated preliminary discussions with Petronas. These talks explore the possibility of state-owned entities (GLCs) or state-specific companies partnering with Petronas in CCUS ventures. This collaborative approach aims to ensure that the ecosystem developed for CCUS provides significant returns and benefits not only to the respective states but also to Malaysia as a whole.

Reading history

Hide →

This history is cleared when the page is closed.

Which four Malaysian states are eyed for CCUS industry leadership?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends