Malaysia aims to establish 3 carbon capture, utilisation and storage (CCUS) hubs by 2030

Minister of Economy Rafizi Ramli said investment in one CCUS hub is expected to reach RM20bn and generate high income job opportunities.

Malaysia has identified 16 depleted fields suitable for carbon capture, utilisation and storage (CCUS), which is a described as a suite of technologies that enable the mitigation of carbon dioxide (CO₂) emissions from large point sources such as power plants, refineries and other industrial facilities, or the removal of existing CO₂ from the atmosphere.

In that vein, according to an article by Bernama, the country aims to establish three CCUS hubs by 2030 with a shared storage capacity of up to 15mn tonnes per annum, about 300,000 barrels per day. 

Cited in the article, MIDF Amanah Investment Bank said that Malaysia is "well positioned as a promising regional hub" for CCUS, contributing to sustainable practices in the oil & gas sector as highlighted in National Energy Transition Roadmap.

The Bernama report further highlighted that according to MIDF Amanah, the 16 depleted fields identified above offer a total estimated storage capacity of 46tn cubic feet for safe carbon storage, of which 11 are offshore in Sabah and Sarawak and the remaining are offshore in Peninsular Malaysia, including Terengganu and Pahang.

Therefore, the CCUS bill, which aims to regulate the activity and attract more investors to Malaysia and is set to be tabled in Parliament in November 2024, is expected to benefit many oil & gas services and equipment (OGSE) companies. 

In a Facebook post on Monday (15 July 2024), Minister of Economy Rafizi Ramli said investment in one CCUS hub is expected to reach RM20bn and generate high income job opportunities.

He added that the new industry will "see the biggest investment in Terengganu in two decades."

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