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23 Nov Petronas, Vopak to Develop CCS Value Chain in Southeast Asia
Malaysian state-owned oil and gas company Petroliam Nasional Berhad (Petronas) [PET:MK] signed a memorandum of understanding (MoU) with Dutch bulk liquids storage company Koninklijke Vopak NV (Vopak) [VPK:NA] to jointly explore the potential of developing a value chain for carbon capture and storage (CCS) in Southeast Asia, as reported by Business Times on November 21. One of the key objectives of the MoU is to assess the feasibility of aggregating carbon dioxide emissions from various emitters in Southeast Asia, especially Singapore. The two parties will also seek the potential of developing a CCS value chain to transport carbon dioxide from Vopak’s tank terminals to regional storage hubs developed by Petronas. The collaboration is in line with both companies’ commitments to support a low-carbon transition.
Prior to its collaboration with Vopak, Petronas has partnered with companies including Japex [JPENGZ:JP], Shell [SHEL:US], POSCO [PKXFF:US], and Mutsui & Co. to develop CCS projects in different countries. Earlier this month, Petronas announced its commitment to achieving net-zero carbon emissions by 2050. The company aims to reach peak greenhouse gas emissions at 49.5m tons of carbon dioxide equivalent (tCO₂e) by 2024 and reduce its methane emissions by 70% across its value chain. To achieve the ambitious targets, Petronas will allocate 20% of its capital expenditure to cleaner energy solutions from 2022 to 2026. These initiatives are also aligned with Malaysia’s commitment to achieving carbon neutrality by 2050.