Malaysia’s nationwide oil and gasoline firm has signed a memorandum of understanding (MoU) with Terengganu to allow the state’s pure ecosystems to generate carbon credit.
“Below the MoU, each events will collaborate to determine and assess potential websites throughout Terengganu for nature-based carbon initiatives that meet internationally acknowledged certification requirements”, Petroliam Nasional Bhd (Petronas) stated in a press launch.
“These initiatives are meant to generate high-quality carbon credit whereas delivering tangible advantages to native communities and supporting environmental conservation”.
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Terengganu State Secretary Mohd Azmi Mohamad Daham stated, “Terengganu is blessed with numerous pure ecosystems that maintain important potential for nature-based options”.
Petronas stated, “Carbon credit generated by NbS [nature-based solutions] are integral for Petronas in addressing residual and hard-to-abate emissions, complementing its Web Zero Carbon Emissions by 2050 Pathway”.
In different carbon seize actions, Petronas final yr acquired regulatory approval for a allow to judge the potential of the Duyong discipline offshore Peninsular Malaysia.
“That is the primary allow issued underneath the newly enacted Carbon Seize, Utilization and Storage Act [Act 870] (CCUS Act 2025) enforced on 1 October 2025, marking a historic milestone for Malaysia’s vitality sector”, Petronas stated in an announcement November 10, 2025.
The allow permits Petronas, Mitsui & Co Ltd and TotalEnergies SE to conduct “complete offshore geological assessments” at Duyong, a part of the deliberate offshore Southern CCS hub, underneath a “key ideas settlement” (KPA) signed July 2025, Petronas stated.
“The KPA permits PCCSV [Petronas CCS Ventures Sdn Bhd], TotalEnergies and Mitsui to put the inspiration for the front-end engineering design section for the Duyong space”, Petronas added. “This partnership paves the way in which for the first-of-its-kind built-in CCS answer for industries within the Asia Pacific area”.
“The allow issuance marks a pivotal step in constructing Malaysia’s carbon seize and storage business, positioning the nation as a regional chief in cross-border CO2 collaboration and accountable vitality transition”, Petronas stated.
In 2024 Petronas secured a land lease in Pahang state from Kuantan Port Consortium Sdn Bhd for the Southern CCS challenge.
“The hub is predicted to have its first injection by 2029 and can play a key position in lowering carbon emissions for hard-to-abate industries regionally and internationally”, Petronas stated in an announcement July 24, 2024 asserting the land rental settlement.
Additionally in 2024 Petronas signed an settlement with Abu Dhabi Nationwide Oil Co PJSC and Storegga to collaborate on a possible CCS challenge with a capability of no less than 5 million metric tons every year in Malaysia.
The “joint research and improvement settlement” will consider the potential of saline aquifers to retailer CO2 emissions, with a view to constructing a CCS facility within the Penyu Basin offshore Peninsular Malaysia, a joint assertion stated August 20, 2024.
To contact the writer, electronic mail jov.onsat@rigzone.com
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