Energy leader Petronas join forces with Mitsui O.S.K Lines (MOL) and MISC Berhad to develop LCO2 carriers for CCS Projects.
Petronas´s subsidiary Petronas CCS Ventures, MISC and MOL have signed a term sheet 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 (CCS) projects in Malaysia.
The parties have agreed in principle on the key commercial terms to allow progress to the next stage.
“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,” noted MISC president and group chief executive, captain Rajalingam Subramaniam.
The partners claim that with this collaboration they will be able to facilitate the development and subsequently materialise the transportation of liquefied CO2 in a safe and sustainable manner.
It is also said that this partnership further reinforces Petronas’ commitment in establishing Malaysia’s potential as a prominent regional hub for CCS.
Building on the MoU agreement signed last year with giant MOL, and the four approval in principle (AiPs) for the conceptual design of the LCO2 carriers in June 2023, the term sheet “marks another milestone”, as the company mentions, for the positioning of CCS as a key lever in Petronas’ net zero carbon emissions by 2050 ambition.
Petronas executive vice president and chief executive of Upstream, Datuk Adif Zulkifli, speaking on behalf of Petronas highlighted that, “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.”
