Back in August 2024, I had the privilege of delivering the opening remarks at a Southeast Asia CCS Accelerator event in Kuala Lumpur.
Hosted by the Global CCS Insitute, it was another reminder of the growing momentum for carbon capture and storage in Asia. The buzz around the development of Asia’s CCS capabilities – particularly for cross-border arrangements – was palpable.
Malaysia clearly sits at the heart of that.
Domestically, CCS in Malaysia will support critical decarbonisation of hard-to-abate industries and the energy sector.
But it is cross-border CCS where Malaysia’s biggest opportunity likely exists. By establishing itself as a storage hub for CO2 captured elsewhere in the region, Malaysia can support broader emissions reductions, while developing new industries and economic activity.
Three things stand out to me when assessing Malaysia’s potential to develop cross-border CCS:
- Storage space: Malaysia has geological capacity that numerous highly industrialised nations within the region lack. The Global CCS Institue has estimated Malaysia has storage capacity for nearly 130 million tonnes of CO2.
- An established oil and gas industry: Malaysia has been producing hydrocarbons commercially for more than 100 years. Its existing workforce has transferable skills and experience that will support the establishment of cross-border value chains.
- Government support: policy development will be essential to unlocking cross-border CCS opportunities in Asia Pacific. I had the honour of meeting with Minister of Economic Affairs Rafiz Ramli at the SEACA event and was very encouraged by the Malaysian Government’s support for CCS.
Since I delivered my opening address in KL, Malaysia and Singapore have entered into an MOU to discuss cross-border CCS and work towards a legally binding agreement. The two countries will share best practices and information on CCS and facilitate industry-led research projects.
There has also been progress on the proposed Sarawak cross-border CCS value chain involving Petronas and eight companies from Japan. The consortium signed a contract with JOGMEC in September 2024 for the commissioning of design work related to the project, which would involve the sequestration of CO2 captured from various Japanese industries offshore of Sarawak.
From an Asia Natural Gas and Energy Association (ANGEA) perspective, we published the outcomes of our Accelerating Cross-Border CCS in Asia Pacific study in Japan in December 2024. The project, undertaken in partnership with Boston Consulting Group, delivered a first-of-its kind framework that analyses the key issues of cross border CCS that should be considered by governments in bilateral discussions.
It was an exciting milestone for ANGEA and its member companies, one that we hope will make a significant contribution to the execution of cross-border CCS agreements in Asia.
I’m looking forward to outlining the study in more detail and how it relates to Malaysia when I speak at the EIC Connect Energy Borneo conference in Kuching on February 26.
I’m also looking forward to again feeling the buzz about cross-border CCS.
With Malaysia assuming the chairmanship of ASEAN for 2025 under the theme of “Inclusivity and Sustainability”, it’s a great time to have momentum for such a vital decarbonisation technology.
Paul Everingham was CEO of the Asia Natural Gas and Energy Association (ANGEA) from September 2022 to June 2026. ANGEA works with governments, industries and communities in Asia, providing affordable solutions that promote energy security, economic growth and decarbonisation.
