Malaysia, Indonesia And Thailand Could Become Regional Hubs For Imported CO2 Storage

KUALA LUMPUR, Dec 4 (Bernama) -- The storage of imported carbon dioxide (CO2) in Malaysia, Indonesia, and potentially Thailand may emerge as a viable new business model, driven by plans from Japan, South Korea and Singapore to ship greenhouse gas captured from industrial sources to Southeast Asia for storage.

CGS International Securities Malaysia Sdn Bhd said the value chain would require new liquid CO2 (LCO2) carriers, CO2 terminals at both export and import points, pipelines to transport CO2 to offshore injection sites, and offshore injection infrastructure.

“MISC is planning to be the owner and operator of LCO2 ships and may also supply offshore injection assets via MMHE.

“We expect that by 2030, Petronas Gas could own and operate CO2 terminals in Malaysia, potentially under long-term contracts with Petronas, the key driver of offshore storage assets in the country,” the research note said on Thursday.

The firm noted that in Europe, Yinson holds a 40 per cent stake in Norway’s Havstjerne carbon capture and storage (CCS) project, aiming to provide maritime solutions for CO2 transport and injection by 2027, while Bumi Armada is pursuing opportunities for its floating storage injection unit.

In Malaysia, CGS International Securities said incentives for CCS advancement are largely absent, limiting the pace and scale of development.

“However, viable business cases may exist for offshore CO2 storage hubs to handle CO2 exports from Japan, South Korea and Singapore, as well as for developing sour gas reserves through CO2 capture and permanent sequestration during natural gas processing,” it added.

The firm noted that Malaysia has no explicit carbon capture targets and has not ratified the London Convention, which is necessary for cross-border CO2 shipping.

Petronas and other petroleum arrangement contractors are leading CCS projects, primarily linked to sour gas development at the Kasawari field (Sarawak), PM3 CAA block (Malaysia-Vietnam Commercial Arrangement Area), the BIGST fields (offshore Terengganu), and the Lang Lebah field (offshore Sarawak).

“General public perception of CCS is unlikely to be negative, as Malaysia’s storage hubs are offshore.

“However, securing public acceptance of CCS mandates and high carbon prices may be challenging, since cost pass-through could raise living costs and affect standards of living among a price-sensitive population,” the brokerage added.

-- BERNAMA