Malaysian state oil company Petronas has initialled a memorandum of understanding (MoU) with a pair of South Korean steel companies to explore opportunities in carbon capture and storage technologies as well as carbon dioxide storage solutions in Malaysia.
According to Petronas, the MoU with Posco International Corporation and Posco Engineering & Construction will see the trio "assess opportunities to unlock CCS potential and identify suitable technology within the scope of carbon capture, transportation of CO2 and storage for potential application."
The provisional agreement was signed by Petronas chief executive Adif Zulkifli, Posco International's head of energy business Hwang Euy-Yong and Posco E&C's head of plant business Lee Gyu Chul.
Commenting on the MoU - which was signed virtually - Adif said: “Given the multiple business adjacencies between Petronas and Posco, we are delighted to collaborate in unlocking the opportunities and potential of CCS."
"This," he said, "is one of the many efforts to establish Malaysia as a leading CCS solutions hub in the region."
Posco is the largest steel manufacturer in Korea and this collaboration aims to allow Petronas to leverage on the Korean conglomerate's experience, especially in carbon capture and transportation," added Adif.
The MoU is part of Petronas' strategy to build a resilient and sustainable asset portfolio to support the transition towards lower carbon energy sources.
The state-owned player is also pursuing more zero continuous flaring and venting of hydrocarbons to reduce emissions aligned with its aspiration to achieve net zero carbon emissions by 2050.
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