Malaysia prepares CCUS roadmap, with Kuantan prioritised for initial hub

Malaysia plans to introduce a roadmap guiding its carbon capture, utilisation and storage (CCUS) industry through 2050, Economy Minister Akmal Nasrullah Mohd Nasir told the Dewan Rakyat. He said Kuantan would take priority in the initial development of a carbon capture and storage (CCS) hub.

The Malaysia CCUS Roadmap 2050, titled Towards Green Economy, would set out successive stages of industry development. Akmal said the Economy Ministry expected to launch it soon.

Separately, the government is studying a proposed east coast CCUS cluster, with completion expected by the fourth quarter of 2027. The work would cover capture and utilisation as well as storage, potential participants and opportunities for industry. State governments would be consulted to help coordinate development plans, he said.

Akmal said CCUS Malaysia had issued two offshore assessment permits by September. Both went to applicants under Petronas for investigations into the suitability of geological sites off Peninsular Malaysia’s east coast for storing carbon dioxide.

Preliminary assessments by Petronas for a CCS hub in Kerteh identified the offshore Lawit field as a potentially strategic storage site. However, Lawit was expected to retain its capacity to produce natural gas beyond 2035. Development of storage capacity and CCS infrastructure in Kerteh would therefore depend on technical and commercial readiness, Akmal said.

Although Kuantan would be prioritised initially, Terengganu industries could still participate in CCUS activities. The government was also implementing a pilot project to capture carbon in Kemaman’s iron and steel industry.

Akmal said the pilot aimed to establish baseline costs to help other industries evaluate the technology’s potential for cutting emissions. It was also expected to encourage more heavy industries to participate in decarbonisation.