PMT Upskilling Exercise 2023

on Energy Transition:
Unlocking New Opportunities through Carbon Capture, Utilization & Storage (CCUS)
for Pengerang Integrated Petroleum Complex (PIPC)’s Sustainable Future
Prepared by:
Syazwan Muhaimin Mohd Rasdi
(Manager - Project Management, Development, JPDC)
& Ts. Mohamad Haziq Senin
(Senior Executive - Project Management, Development, JPDC)

Reviewed by:
Ts. Md Dasuki Samad, PMP
(Vice President - Project Management, Development, JPDC)

Endorsed by:
M. Azmi Monadi
(Senior Vice President/ Head Development, JPDC)

28 November 2023
Kasawari gas field,
offshore Sarawak Copyright © Johor Petroleum Development Corporation Berhad | 2023
From HOD Development's Desk:
In the context of the Twelfth Malaysia Plan (12MP), which charts the nation's development trajectory, the year 2022 marked the introduction
of the National Energy Policy (NEP). This policy envisions the energy sector as a driving force for economic growth, emphasizing environmental
sustainability. Now, Pengerang Integrated Petroleum Complex (PIPC) is gearing up to actively participate in this transformative journey.

In harmony with the 12MP's vision, PIPC is dedicated to the NEP's goals, with a particular focus on low-carbon development and sustainability.
Their approach involves adopting Carbon Capture, Utilization, and Storage (CCUS) technologies. In simpler terms, they are taking measures to
capture and reuse carbon emissions, showcasing their commitment to environmental responsibility within the broader 12MP framework.

By comprehending the concept and methodology of CCUS, PIPC is not just contributing to national objectives but is also leading in responsible
industry practices. This strategic move represents a significant step toward a cleaner, more sustainable energy future—a commitment deeply
embedded in the strategic objectives of both PIPC and the Twelfth Malaysia Plan.

At the Development Department JPDC, we believe that taking calculated risks and staying ahead of the curve is the key to success.
Continuously identifying emerging industries allows us to propel PIPC's economy forward and open new doors of opportunity. While not
everything faced can be changed, nothing can be changed until it is faced. The Development Department remains resolute in our commitment
to position PIPC as a coveted destination for oil and gas downstream investors worldwide. We are determined to foster a thriving ecosystem
that nurtures business growth and innovation.

Thank you for your unwavering support towards a brighter and prosperous future.

M. Azmi Monadi
Senior Vice President, Development Department,
Johor Petroleum Development Corporation Berhad.

Copyright © Johor Petroleum Development Corporation Berhad | 2023 2

Outline of Presentation

1. PMT Upskilling Exercise 2023

2. Energy Transition
3. What is CCUS?
4. Implementation of CCUS in Malaysia
• Malaysia’s CCUS Outlook
• Integrating CCUS in PIPC - Why?
• Assessing the Feasibility of Integrating CCUS in PIPC

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3
PMT Upskilling Exercise 2023
In 2022, the Government unveiled the National Energy Policy (NEP) 2022-2040 aimed at propelling the
country’s energy sector as a key driver of growth for its socioeconomic development. The policy focuses on
low-carbon development, resource efficiency, and environmental and natural resource sustainability.

To achieve this, the NEP has identified integrated carbon capture, utilisation and storage (CCUS) as critical
enabling technologies. These technologies are expected to drive sustainability in industrial operations and
complement the renewable energy (RE) sector’s value chain.

CCUS is an innovative technology that prevents carbon dioxide (CO2) from entering the atmosphere by
capturing CO2 emissions from industrial sources preventing them from being released into the air. The
captured CO2 can then be reused or stored in large-scale injection and long-term storage facilities. By
transforming GHG emissions into valuable investments, CCUS will enable Malaysia to achieve its net zero
GHG emissions target by 2050.

According to the International Institute of Energy (EIA), there are currently about 35 commercial CO2 capture
facilities operating globally, with a total annual capture capacity of 45 million tonnes per annum (Mtpa) of CO2.
In the next decade, carbon capture is estimated to grow by 370 Mtpa, mainly in North America and the UK.
Storage capacity is also expected to increase from 75 Mtpa to around 500 Mtpa by 2033, with the US, UK,
Canada and Australia accounting for two-thirds of global storage capacity by that time.

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PMT Upskilling Exercise 2023
Aligned with the national ESG objectives and net-zero carbon targets in the downstream oil & gas sectors,
Project Management Team (PMT) of Development Department, JPDC has initiated an upskilling exercise
continuously to familiarize ourselves with topics related to energy transition.

On the road to net zero, one of the main ways that companies’ greenhouse gas emissions are measured and
assessed is to look at them within three different ‘scopes’; Scope 1 – Direct emission from the company’s
operations, Scope 2 – Indirect energy emissions & Scope 3 – Other indirect emissions. The International
Panel on Climate Change include CCUS as one of the ways the global community can achieve net zero
carbon emissions by mid-century in a safe and effective manner. For the year 2023, our focus will be on
carbon capture, utilization, and storage (CCUS).

The primary goal is to comprehend existing CCUS technologies and assess their potential application within
Malaysia and PIPC to reduce CO2 emissions for a long-term initiative in combatting climate change.

This initiative shall pave the way for PMT, Development Department, and JPDC collectively to approach
PIPC's development from an environmentally conscious standpoint, fostering sustainable practices,
minimizing carbon footprints, and playing a substantial role in shaping a more sustainable future
for the industry.

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Energy Transition &
Emission Control
Energy transition is a structural shift in energy systems,
characterized by a transition towards cleaner sources of energy,
increased use of RE, and a significant reduction in carbon
emissions.
The energy transition is expected to occur at an accelerated
pace, driven by rapid technological advances and robust climate
change policies.

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Sustainable Energy Sources

Worldwide different approaches are adopted to reduce the CO2 emissions, some are as
following:
• Improve energy efficiency and promote energy conservation.
• Deploy renewable energy, such as wind, solar, bioenergy, and hydropower.
• Apply geoengineering approaches, e.g. reforestation and afforestation.
• Increase usage of low carbon fuels, including hydrogen, nuclear power or NG.
• CO2 capture and storage (CCS)

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To address this issue, world leaders have initiated several
conventions like the Paris Agreement, Kyoto Protocol, UNFCCC,
and Sustainable Development Goals (SDG) already taken place in
Glasgow, UK. COP26 and the COP27 meetings are aimed at
limiting the temperature rise to a safe limit of 1.5°C.
Unfortunately, there are no signs of a reduction in GHG
emissions, and we seem to be on track towards the 1.5°C – 2.0°C
temperature rise.
NationalGeographic.Org
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Climate Change: Carbon Dioxide
01 – Carbon Cycle & GHG
The carbon cycle is a natural and essential
process that describes the movement of
carbon, in various forms, through the
Earth's atmosphere, oceans, land, and living
organisms. It's a critical part of maintaining
the planet's carbon balance and regulating
the concentration of CO2 and other
greenhouse gases in the atmosphere.

Figure 1: Distribution of CO2 emissions at various human activities.

Source : U.S. Environmental Protection Agency

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Climate Change: Carbon Dioxide
01 – Carbon Cycle &
GHG
CO2 is an anthropogenic greenhouse
gas that absorbs and radiates heat.
It’s responsible for about 2/3 of the
total energy imbalance that causes
Earth’s temperature to rise.

Figure 2: Distribution of CO2 emissions at various human activities.

Source : U.S. Environmental Protection Agency

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Climate Change: Carbon Dioxide
01 – Carbon Cycle &
GHG
CO2 is an anthropogenic greenhouse
gas that absorbs and radiates heat.
It’s responsible for about 2/3 of the
total energy imbalance that causes
Earth’s temperature to rise.

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 Climate Change: Carbon Dioxide
02 – Industrial Revolution & Human
Activities
• Ever since Industrial Revolution era began around 1750,
human activities have contributed substantially to climate
change by adding CO2 and other heat-trapping gases to the
atmosphere.

• In 2020, about 79% of CO2 from GHG emissions in

U.S
contributed by human activities.

Figure 5: Distribution of CO2 emissions at various human

activities.
Source : U.S. Environmental Protection Agency

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Climate Change: Rise In CO2 Emissions
CO2 Levels
0 In 2023, atmospheric CO2 levels
have reached around 419.6 ppm

1 which a 50% increase over the

1750 – 1800 average.

Doubled-
0 CO2human-driven
The CO2 rise

2
is halfway towards “Doubled-CO2”.

Energy Demand
Figure 9: Carbon dioxide level since a pre-industrial year.
If global energy demand continues to

0
Source: Climate.gov
grow and to be mostly with fossil
fuels, atmospheric carbon dioxide

3
is projected to exceed 900 ppm by
the end of century.

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 The Paris Agreement Enforcement
In December 2015, acting under the UNFCCC, 195 nations negotiated the Paris Agreement, committing to do what
it takes to keep temperature increases from rising more than 2°C (3.6°F) above pre-industrial levels by the end of
the century.
01 04
The Paris Agreement is a legally binding To achieve this long-term temperature goal,
international treaty on climate change. countries aim to reach global peaking of
greenhouse gas emissions as soon as possible to
achieve a climate neutral world by mid-century.

02 05
It is adopted by 196 parties in Paris on 12 In order to avert the worst impacts of climate
December 2015 and entered into force on 4 change and preserve a livable planet, and to keep
November 2016. the global warming to no more than 1.5°C,
emissions need to be reduced by 45% by 2030 and
reach net zero by 2050.

03 06
Its goal is to limit global warming to well Put simply, net zero means cutting greenhouse gas
below 2, preferably to 1.5 degrees Celsius, emissions to as close to zero as possible, with any
compared to pre-industrial levels. remaining emissions re-absorbed from the
atmosphere, by oceans and forests for instance.

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Carbon Budget

0 Amount of CO2 that humanity can emit

while still having a chance to contain global
1 warming within 2 degrees Celsius

If the world emits more carbon than the

budget, the temperature of the planet will go
0
above the target and vice versa.
2
0 For 2 degrees Celsius of global warming, the
carbon budget is estimated to be around
3 2900 gigatons of CO2.

Once the world has reached its carbon

budget, 100% of the emissions associated with
0
Figure 14: Global sea levels.
Source : NASA's Goddard Space Flight
these fuels will need to be tackled.
4
Center

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Remaining Carbon Budget

• The remaining carbon budget for a

50% likelihood to limit global
warming to 1.5°C, 1.7°C and 2°C has
reduced to an equivalent of 9, 18 and
30 years from
2023 (at 2022 emissions levels).

• 2495 GtCO2 have been emitted

since 1850.
Figure 16: The remaining carbon budgets.
Source: globalcarbonproject.org

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Paris Agreement with SDGs
In April 2017, Mission 2020 launched a global campaign,
convened by former UN climate chief and lead negotiator for
the Paris Agreement, Christiana Figueres. The campaign was
designed to inject urgency into efforts to address climate
change after experts marked the year 2020 as the critical
turning point by which we must bend the curve of carbon
emissions.

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Carbon Emission Scope 1,2 and 3
On the road to net zero, one of the main ways
that companies’ greenhouse gas emissions are
measured and assessed is to look at them within
three different ‘scopes’.

Essentially, scope 1 are those direct emissions

that are owned or controlled by a company,
whereas scope 2 and 3 indirect emissions are a
consequence of the activities of the company but
occur from sources not owned or controlled by it.

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Paris Agreement, SDGs, and ESG criteria
Sustainable Development Goals Environmental, Social, and
Aspect Paris Agreement
(SDGs) Governance (ESG)

Addressing a range of global

Mitigating climate Evaluating company impact on the
Common Goals for challenges, including climate action,
change and enhancing environment, society, and
Sustainability poverty, hunger, health, education,
resilience governance practices
etc.

Climate Action and Primarily focuses on Goal 13 addresses climate action; "E" in ESG focuses on
Environmental climate action and environmental sustainability is a environmental criteria like carbon
Considerations emissions reduction cross-cutting theme in several goals footprint and sustainable practices

While primarily "S" and "G" in ESG stand for Social

Social and environmental, social Broad range of social and economic and Governance, respectively,
Governance and economic factors are issues, including poverty, health, covering factors like employee
Considerations considered in climate education, gender equality relations, diversity, ethics, and
change context transparency

Emphasizes a global partnership for

Involves international Encourages companies to engage
Global sustainable development,
cooperation among with stakeholders and operate
Collaboration collaboration among governments,
countries responsibly on a global scale
businesses, and civil society

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Sustainable Development Goal
Positive Impact on reduce Carbon Footprint
 SDG13 : immediately decarbonize both the power and
industrial sector means that the deployment of CCS is
considered indivisible with actions needed to combat
climate change
 SDG7 : enabling role in the provision of reliable,
sustainable and modern energy and can support the
decarbonisation of industry both through direct
emissions reductions but also indirectly through the
supply of low carbon power
 SDG8 : CCS can promote sustained, inclusive and
sustainable economic growth, full and productive
employment and decent work for all and contribute to a
decoupling of economic growth from environmental
degradation, through the reduction of CO2 emissions
 SDG 9 : enable sustainable infrastructure developments as
well as inclusive and sustainable industrialization, provide
a boost to innovation systems
 SDG11 : reduce the carbon footprint of cities to make
them more sustainable
 SDG 14 : Through the reduction of CO2 in the
atmosphere, CCS can enable the stabilisation of ocean
acidification

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Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance
(ESG) initiatives have gained prominence
globally as a comprehensive approach to
addressing climate change and other
sustainability challenges. ESG practices involve
reducing carbon emissions, promoting social
responsibility, and ensuring good governance in
business operations. Adopting ESG principles is
crucial for industries worldwide to contribute
positively to environmental protection.

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Twelfth Malaysia Plan, 2021-2025
Advancing Green Growth for Sustainability and Resilience

No New Blue Economic

Carbon Electric
Coal Power Print
Pricing Vehicle
Plants
Government would no
longer build new coal- Government gives
fired power plants. priority to the
Cleaner electricity Economic instruments development of energy-
To determine the efficient vehicles (EEV)
generation will be such as carbon pricing
implemented through
development direction production industry to
and carbon tax would be
the operation of several of coastal and marine support environmentally
implemented.
gas power plants in areas friendly mobility
Peninsular Malaysia to initiatives.
replace coal-fired power
plants.

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National Energy Policy, DTN (2022-2040)

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National Energy Transition Roadmap (NETR)
The Twelfth Malaysia Plan sets the overarching goal of achieving net-zero GHG emissions by 2050. The
National Energy Policy (DTN) provides the foundational principles for an equitable energy transition. The
National Energy Transition Roadmap (NETR) is then introduced as a specific strategy to accelerate the
transition, outlining a comprehensive approach that involves multiple stakeholders.

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National Energy Transition Roadmap (NETR)

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 Malaysia Budget 2024:
To ensure the successful deployment of CCS projects in Malaysia, significant capital
Tax Incentive for Green Technology by MIDA investments and extensive support from various stakeholders play a vital role in
accelerating the growth and execution of these large-scale carbon projects. Government
intervention, industry leaders, financial institutions, and policymakers all have an
important role to play in ensuring the success and implementation of the CCS project
across industries.

As envisaged under the NEP, the Low Carbon Nation Aspiration 2040 has been
developed to emphasise low carbon policies and investments, with the goal of
increasing adoption and pursuing selective leadership in low carbon sectors. In line with
this aspiration, the Government introduced catalytic incentives and supportive
regulatory frameworks in Budget 2023 to spur investment and transition to a low carbon
economy growth ecosystem for Malaysia. As part of this initiative, the Government has
identified the use of CCS technology as a means of reducing CO2 emissions.

The oil and gas and power generation industries will be a pioneer in leveraging the
following activities of CCS technology in Malaysia:

1.Carbon capture
2.Transportation of captured CO2Underground or sea bed CO2 storage

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Tax Incentive for Green Technology by MIDA
To recognise CCS activities as a new source of economic growth and to achieve net-zero GHG emissions, the following tax incentives have
been introduced:

i. Companies undertaking in-house CCS activity

1.Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure for a period of 10 years. The allowance can be set-off against up to
100% of business statutory income;
2.Full import duty and sales tax exemption on equipment used for CCS technology commencing on 1 January 2023 until 31 December 2027;
and
3.Tax deduction for allowable pre-commencement expenses within 5 years from the date of commencement of operation.

ii. Companies undertaking CCS services

4.ITA of 100% of qualifying capital expenditure for a period of 10 years. The allowance can be set-off against up to 100% of statutory income;
or
5.Tax exemption of 70% on statutory income for a period of 10 years; and
6.Full import duty and sales tax exemption on equipment used for CCS technology starting 1 January 2023 until 31 December 2027.

iii. Companies using CCS services will be given tax deduction on fees incurred for the use of services.

Effective Date of Application

7.For applications received by the Ministry of Finance from 25 February 2023 until 31 December 2027.
8.Tax deductions can be claimed through the Income Tax Return Form from the year of assessment 2023 until the year of assessment 2027.

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Malaysia Budget 2024:
Low Carbon Transition Facility by BNM
BNM's LCTF is established to support Small
and Medium-Sized Enterprises (SMEs) in
adopting sustainable and low carbon
practices. LCTF is open for SMEs in all
sectors that are committed to transform their
business operations towards low carbon
operations. This includes improving energy
efficiency, increasing use of sustainable
material for production and obtaining
sustainability certification

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 CCS Regulatory Development (Malaysia)
Regulatory Development 01
06 01
Mostly, to amend the available oil and No development in laws that facilitate
gas law for offshore storage and to deal 06 02 stages of the CCS project cycle
with local agency for onshore storage.

05 02
To announce new regime on CCS in Incentivizing clean energy through
2023 Renewable Energy Act in 2011

05 03
04 03
Conducted Malaysian CCS Legal and Committed to reduce 40% reduction of
Regulatory Workshop in 2013 emission of 2005 levels by 2020

04
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CCS Regulatory Development (Malaysia)
Regulatory Development

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CCS Regulatory Development (Malaysia)
Regulatory Development

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Carbon Pricing & Regulations
• Industry player to consider the cost for
adopting carbon capture (developing
capture facilities, transportation & fees
related to storage) VS carbon pricing
by the Government (when
implemented).

NETR

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 What is CCUS?

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CCUS Main Components

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Definition of CCUS
CCUS involves the capture of CO2, generally from large point sources like power generation or industrial facilities that use either fossil
fuels or biomass as fuel. If not being used on-site, the captured CO2 is compressed and transported by pipeline, ship, rail or truck to
be used in a range of applications or injected into deep geological formations such as depleted oil and gas reservoirs or saline
aquifers.
01 04
The concept of CCS was first reported by Marchetti in The US EPA defines CCS as “a set of technologies that
1977 where he highlighted the effect of CO2 on global can greatly reduce CO2 emissions from new and
warming existing coal- and gas-fired power plants and large
industrial sources’’

0 05
Until the development CCS, CO2 was only widely2 CCUS (Carbon Capture Utilization & Storage)
applied in CO2EOR since the 1960s involves trapping of CO2 emitted from industrial
processes, such as steel and cement
manufacturing, petroleum refining, and paper mills
and compressing it into reservoirs

03
The pilot CCUS Sleipner and the IEA Greenhouse Gas
R&D Programme (IEAGHG) Weyburn–Midale CO2 06
Monitoring and Storage Projects began in 1996 & CCUS is vital to achieve the net zero targets of 2030
2000 respectively. & 2050.

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CO2 Capture: Definition
CO2 Capture: Separation of CO2 from a gas stream produced in a power station or at industrial
processes to obtain pure CO2 for the geological sequestration or further use.

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Greenhouse Gases (GHG)

IPCC Report, 2022

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CO2 Emitter
Globally, refining sector ranks third among stationary CO2 producers. A refinery
may use about 1.5% - 8% of feed as fuel (depending on the refinery complexity).
For a typical world-scale 300,000 barrel per day refinery, this will lead to CO2
emissions ranging from 0.8 – 4.2 millions tons of CO2 per year. CO2 may be
emitted at refineries from a variety of sources – as shown in the Table above.

An overview of the CO2 emission profile of the reference world-scale complex refinery is shown
in the figure. The two largest point sources are a cogeneration plant (utilities) and a gasifier.
J. Van Straelen et al. (2009) “CO2 Capture for Refineries, A Practical Approach” Energy Procedia.

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Carbon Capture: Point Source Capture
CO₂ can be captured either from a facility emitting CO₂ (point source capture) or
directly
from the atmosphere (i.e., direct air capture, or DAC).

Pre-combustion Post- Oxy-

• Fuel is reacted combustion Combustion
with air/ O2 and • CO2 is captured • Flue gas resulted
steam from the flue gas from combustion
• Produce a using O2
mixture • Consist mainly
of CO2 and H2 CO2

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Carbon Capture: Point Source Capture

CO2 capture systems

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Carbon Capture: Direct Air Capture
• CO₂ can be captured either from a facility emitting CO₂ (point source capture) or directly from the
atmosphere (i.e., direct air capture, or DAC).

• DAC technology extracts carbon dioxide from the atmosphere and does not require a
nearby pollution source, unlike industrial off-gas capture.

• Carbon dioxide removal is achieved when ambient air makes contact with chemical media,
typically an aqueous alkaline solvent or sorbents. These chemical media are subsequently stripped
of CO₂ through the application of energy (namely heat), resulting in a CO₂ stream that can
undergo dehydration and compression, while simultaneously regenerating the chemical media for
reuse.

• In some literatures, this carbon capture mechanism in which carbon dioxide is directly being captured
from the atmosphere is also termed as carbon removal.

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Carbon Capture: Direct Air Capture
Briefly, DAC (may) consists of a three-step process:
i. Air is drawn in through a fan located inside the collector. Once sucked in, it passes through a filter
located inside the collector which traps the carbon dioxide particles.
ii. When the filter is completely full of CO₂, the collector closes, and the temperature is increased to
about
100°C.
iii. In this way, it causes the filter to release the CO₂ and we can finally collect it.

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How is CO2 Transported?

Pipeline Ship
The most common method of transporting the Alternative for many regions of the world.
very large quantities of CO2 involved in CCS.
CO2 shipment of takes place on a small scale in
Most economically viable. Europe, where ships transport CO2 (around 1000
There are millions of kilometers of pipelines tonnes) from large point source to coastal
around the world that transport various gases, distribution terminal.
including CO2.

Truck/Rail Shipment with LPG

Possible for small quantities. But, if large
Larger-scale shipment of CO 2 with capacities in
quantities of CO2 is captured in long-term via CCS, range of 10,000 to 40,000 cubic metres.
truck, and rail transportation will be significant.
There is already a great deal of expertise in
Trucks are used at some project sites, moving the transporting LPG, which has developed over a
CO 2 from where it is captured to a nearby storage period of 70 years.
locatio
n.

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How is CO2 Transported?

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What Can We Do with Captured CO2?
1. CO2 use is the process of using CO2 as a raw material for products or services with a
potential market value. The range of potential applications is very large and includes direct
use, where the CO2 is not chemically altered (non-conversion), and the transformation
of CO2 to a useful product (conversion).

2. Most applications make use of several unique properties of CO2, including its large
heat absorption capacity, stable and nonreactive nature, and its ability to act as a solvent.

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What Can We Do with Captured CO2?

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 CO2 Mineralization for Sustainable
Construction Materials
• Carbon utilisation
technologies could also
convert CO2 into stable, solid
carbonate materials, which
are then used to produce a
range of building materials,
including high performance
concrete, plasterboards and
electrical insulation. • Dissolved carbon dioxide reacts
with the minerals (termed CO2
Mineralisation) in rock to produce
carbonate (e.g., mainly calcium),
which is stable over a long period of
time and can be used in
construction.

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Storage: Geological Criteria

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 Storage: Geological Criteria
Underground Stable
1 Supercritical CO2
1 Away from Natural
Hazard/Disaster
- CO2 can be stored underground as a
supercritical fluid

- at > 31.1 °C and >72.9 atm,

CO2 behaves like both liquid and gas. In
particular, it is dense like a liquid but
has viscosity like a gas.

2 Critical Depth
- >800m to ensure CO2 is in dense
form (at correct temperature and
pressure)

- Depth at which geological storage

seals are affective where gas fields
have been contained for millions of
years.

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Storage: Geological Criteria
Seal

• Impermeable layer of rocks (Shale, anhydrite, salt) that

form a barrier above and around reservoir rock
preventing the fluid migration.
• Also known as a Caprock.

Trap
• A geometry/configuration of rock suitable
for containing hydrocarbon
• Associated with the presence of seal.
• Can be described into two types of traps:
• Structural Trap (folds and Faults)
• Stratigraphy Trap (uncornformity,
Pinch out, reef)

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 Storage: Geological Criteria
Reservoir

• CO2 is injected directly into • Also known as Mineral sequestration is based

sedimentary rocks. on the reaction of CO2 with alkaline-earth
metal oxide bearing materials to form
• The rocks may be in: insoluble carbonates.
i. saline formations
ii. Unminable coal seams
iii. EOR
iv. Old field

• Can be classified into 2:

• In-Situ Mineral Carbonation (Basalt Credit: Global CCS Institute
Formation)
• Ex-Situ Mineral Carbonation
(Processing/Production)

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 Type of Storage
1 2 3
Depleted Reservoir Saline Aquifer Un-mineable Coal
• Considered as the most suitable • ‘Unmineable’ coal, is a coal formation
because of least risk and uncertainty that is too deep or difficult to mine,
for possible leakage from high degree of can be used to store CO2.
reservoir exploration, long period of
production (Tomic et al., 2018). • The coal absorbs the CO2, provided
• In the United States, approximately 30– the coal is permeable enough to
50 million tonnes of CO2 are injected allow CO2 to penetrate.
annually into declining oil fields, to
• The sale of the CH4 can offset some
increase oil production.
of the cost of the CO2 storage.

• Saline Aquifer is a present of highly

concentrated brine (salty water) in
the pores of huge sponge-like
deep rock formation.
• Unlike storage in oil fields or coal
beds, there is no useful by-product
to offset the cost of storage.
Copyright: Maersk Tankers
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Global Status
CO2 Emissions Trajectory

Figure 3: CO2 emissions trajectory. Source: iea.org

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 Global Status
CCUS Facilities: Capture Almost 45 MtCO2 annually

01 There are now around 35 commercial capture facilities

in operation globally, with a total annual capture
capacity of almost 45 Mt CO2.

A number of new capture facilities have come online in

02 recent years:
• Gorgon CO2 injection project in Australia (2019),
• 2 capture facilities linked to the Alberta Carbon Trunk
Line in Canada (2020)
• First large-scale bioenergy with carbon
capture project in Japan (2020)
• 2 capture facilities in China at the Sinopec Chemical
plant & Guohua Jinjie coal power plant (2021)

Around the world, positive final investment decisions

Figure 4: Capacity of large-scale CO2 capture projects, current and planned vs. the Net Zero Scenario, 03 (FID) were taken on six CCUS projects in 2021; once
2020-2030. Source: iea.org operational those projects will capture around 6.5 Mt
CO2 per year.

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 Malaysia’s CCUS Outlook

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Malaysia’s CCUS Outlook
Kasawari Field,Sarawak KASAWARI FIELD
The Kasawari CCS Project will be located in Block SK316,
about 200km off Bintulu in Sarawak. The CCS platform will be
installed in a water depth of 108m. The Block SK316 also
includes NC3 Gas Field which supplies feedstock gas to the
Petronas LNG Complex at Bintulu.
The CO2 removal will be conducted leveraging a membrane
separation technology.

M1 FIELD
The captured CO2 will travel 138km via a new 16-inch subsea
pipeline to the existing M1 Platform and then be injected and
stored at a rate of 3.3 million tonnes per year in the M1
depleted gas field in offshore Sarawak Basin, Malaysia. Once
on stream, the project is expected to capture 71 to 76
million metric tonnes of CO2 which will be injected into M1
field.

OPERATIONAL
Figure 15: Kasawari field. Source: petronasmbr.com/ccs
CCS will be in operation in phase 2 by 2025 to tackle high
CO2 levels in processed natural gas. First injection of CO2
planned for the end of 2026.
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Malaysia’s CCUS Outlook LANG LEBAH FIELD
Lang Lebah Field, Sarawak PTTEP and Petronas will remove CO2 (as a part of a
broader sour gas development) at the Lang Lebah
Onshore Gas Plant 2 (OGP2), located in Bintulu,
Sarawak. The natural gas comes from the Lang Lebah
Gas Development, offshore Sarawak (Block SK410B).
Lang Lebah is part of the broader Sarawak Integrated
Sour Gas Evacuation System (SISGES), where CCS will
be used to enable the development of high contaminant
(sour gas) fields, offshore Sarawak. Petronas plans to
create clusters to share infrastructure and achieve
economies of scale as a regional CCS hub. Petronas will
allocate 60% of storage capacity to Malaysia - for
Petronas and partners - while the remaining 40% will be
made available to other users.

GOLOK FIELD
The CO2 from Lang Lang Lebah field will then be piped via
an offshore pipeline (approximately 150km) from the gas
plant to the depleted Golok gas field. Petronas will
construct a CCS platform at the field also located in
offshore Sarawak.

Figure 16: Lang Lebah field. Source: petronasmbr.com/ccs

OPERATIONAL
2026
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Malaysia’s CCUS Outlook
Potential Carbon Capture Storage
1. Malaysia has sufficient fields that are already identified for safe carbon storage to cater for domestic and
regional emissions.
2. More than 46 Trillion Cubic Feet (Tcf) of storage capacity has been identified and it is ample to cater for
upstream’s CO2 emission.

Figure 14: Potential CCS in Malaysia. Source: petronasmbr.com/ccs

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 Integrating CCUS in PIPC

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Why Oil & Gas industry?
Summary of Malaysia’s GHG (CO2) Emission in 2019

Legends:
IPPU = Industrial Processes and Product Use
AFOLU = Agriculture, Forestry and Other Land Use
LULUCF = Land Use, Land Use Change and Forestry
Gigagrams (Gg) 1 Gg = 1 000 tonnes

In 2019, the energy sector remained as the largest contributor of emissions where it accounted
for 78% of the total GHG emissions. This is followed by the IPPU sector, which contributed to
about 10% of the total emissions.

Based on Malaysia’s Fourth Biennial Update Report submitted to the United Nations
Framework Convention on Climate Change in December 2022
as prepared by NRECC

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Why Oil & Gas industry?
GHG emission time series from 1990 to 2019

Based on Malaysia’s Fourth Biennial Update Report submitted to the United Nations
Framework Convention on Climate Change in December 2022
as prepared by NRECC

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Why Oil & Gas industry?
Summary of Malaysia’s GHG (CO2) Emission in 2019
Emissions (Gg) Emissions (Gg)
Energy 3%11% IPPU
16%
Sector 26,525.29 Gg 4,170.48 Gg
27% 5%
40%

46%
14% 109,349.3055 Gg
39%

Petrochemicals Ammonia Production

Petroleum & Gas Electricity & heat production Mineral Industry Metal Industry
Manufacturing Ind. & Construct. Transport
Other Sectors Based on Malaysia’s Fourth Biennial Update Report submitted to the United Nations
Framework Convention on Climate Change in December 2022
as prepared by NRECC

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Why Oil & Gas industry?
CO2 emission in oil and gas industry
1. In the oil and gas industry, CO2 is generated from the combustion of natural gas on-site for power
generation purposes. The International Energy Agency (IEA) in their report in 2018 says that there are around
5200 million metric tons of CO2 equivalent (MMTCO2e) emitted to the atmosphere as of the reporting year which
comes from the indirect GHG emissions in oil and gas operations alone, and that includes both carbon dioxide and
methane emissions. These two gases are the greenhouse gases that are usually released through the flaring and
venting activity.
2. Flaring is the controlled combustion of the natural gas that is done for either operational and safety
purpose, or for economic purpose, while venting on the other hand is the direct release of the gas to the
atmosphere and is usually done for operational purpose. Based on the same report, flaring is better than
venting if compared from an environmental standpoint. This is because, venting releases methane directly to the
atmosphere, while in flaring, the methane is oxidized through combustion and will release carbon dioxide and water.
3. In Malaysia, flaring and venting are still widely used in the
operation of the oil and gas industry. This is an alarming
practice that requires the government to play the role in setting
policies and the oil and gas main operator in planning the ways
of reducing the emission through technologies. The combustion
of fossil fuels in vehicles and industrial processes and emission from
the oil and gas facilities are the main contributors in producing and
emitting excessive CO2 to the environment.
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Why this industry?
Type of greenhouse gases emitted from oil & gas industry
• The petroleum industry consumes a significant amount of fossil
fuels for operational purposes, and this contributes to greenhouse
gas emissions. The greenhouse gases associated with the
petroleum refining and petrochemical industries are mainly
methane, carbon dioxide and nitrous oxide.
• In 2006, it was noted that equipment leakage and venting of
CH4 and CO2 from petroleum and natural gas industries
contributed to 317 million metric tons of CO2 equivalent
(MMTCO2e). Out of this, 261 MMTCO2e of CH4 and 28.50
MMTCO2e of CO2 were emitted from the natural gas industry,
whereas 27.74 MMTCO2e of CH4 and 0.29 MMTCO2e of CO2
were emitted from the petroleum industry.

Air Quality Impacts of Petroleum Refining and Petrochemical Industries,

University of Waterloo, 2017
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Why PIPC?
PIPC Master Plan 2.0

Pengerang Integrated Complex

By PETRONAS

Pengerang Deepwater Terminal

By Dialog
Active

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Why PIPC? Active

Active Plots at PIPC

Pengerang Integrated Complex
By PETRONAS
Pengerang
Deepwater Terminal
By Dialog

Pengerang Cogeneration Plant

Pengerang Independent Terminal Pengerang LNG (Two) DIALOG Terminals Pengerang (5)
Products: Crude & Clean Products: LNG Products: Middle Distillates
Petroleum Products Services: Storage and Services: Storage, mixing,
Services: Storage, mixing, regasification of LNG circulation and additivation
circulation, heating and
additivation

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 Why PIPC?
Future Plan at PIPC
Pengerang Medium & Light
Oil & Gas City Industry
Pengerang Industrial Park
by Johor Corporation Plastic & Fine
Chemicals Park

Oil & Gas Refinery/

Petrochemical
Oil & Gas Refinery/ by Investor 4
Petrochemical
by Investor 3

Oil & Gas Refinery/

Petrochemical
by Investor 2

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 Why PIPC?
Pengerang GHG emissions by end-use sector 1. There was a study conducted by UTM in 2021 based on
the baseline results of the energy supply and demand
scenario in Pengerang from base year 2010 until targeted
year of 2030.
2. The scenario which was then modelled using a designated
tool predicted about 691% carbon emission increment
from 2010 to 2030 without low carbon emissions
countermeasures (CM) in Pengerang, due to expected
rapid development lead by the petroleum refining and
petrochemical industries in the area.
3. The data assumption for the model is based on best
practice low carbon emissions port city such as
Rotterdam.

Carbon
Emission > Carbon
Sink
Energy Demand and GHG Emissions by 2030: A Scenario Analysis Using Extended
Snapshot Tool towards Sustainable Low Carbon Emissions Development in
Pengerang, UTM, 2021
Copyright © Johor Petroleum Development Corporation Berhad | 2023 68
 Why PIPC?
GHG emissions in PIPC, Pengerang

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 Assessing the Feasibility of
Integrating CCUS in PIPC

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Assessing the Feasibility in PIPC
CCUS Process Flow

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 Carbon Capture
1. Capture technology in the market: point source
capture, DAC, bioenergy – Industry players to
consider capture efficiency, cost for capex/opex,
energy requirements, solvent/ material lifecycle,
technology maturity & sustainability.
2. To develop capture facilities at emission site level
(large stationary sources of CO2, like oil and gas
refineries or petrochemical plants in PIC).
3. Petronas to be leading company to introduce the
technology and facilities for carbon capture.
4. Apart from that, there are plenty of proven matured
method available and services offered at the
international level for such technology.
5. Government policy on taxing and incentives needs to
Pengerang GHG emissions by end-use sector established and enforced for the industry to proceed.
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Storage
1. Options:
a) Depleted O&G reservoir –
not available in Pengerang
b) Enhanced Oil Recovery
(EOR) – no active
hydrocarbon site
c) Saline aquifer/ unmineable
coal – Possible. Technology
is still immature. Requires
exploration. Very costly.
2. PIPC is not recommended as
storage hub due to the above.

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Storage
1. For short term period, it is recommended for CO2 captured in PIPC to be transported
and stored at;
a) Kasawari - M1 Storage (ready for injection by 2026) by ship or;
b) Lang Lebah – Golok Storage (ready for injection by 2026) by ship or;
c) Kerteh Storage (TBA) by ship or land transport.
2. To develop a centralized temporary storage (transit hub) for CO2 treatment and
transportation centre. A good new business model for potential investors.

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Transport
1. Generally, the transportation mechanism is more or less similar with the one adopted in oil and gas
industry i.e., by pipeline, truck and shipping.
2. Developing a dedicated CO2 pipeline for large key sources will be a valuable long-term investment
despite the high cost for its development. Special material for the pipeline needs to be considered as
CO2 is corrosive prone.

3. For short-term period and alternative to other industry players, transportation using truck to the
centralized temporary storage can be opted.
4. Transportation to permanent storage site (M1, Sarawak) will be through shipping. There is a need for
liquefaction which will require a significant cost consideration.
5. Government policy that allows for transboundary transport and storage of CO 2 especially by shipping
needs to be established.
6. Given that PIPC has established its port facilities for current business operation, the next phase
involves integrating these facilities with the existing port infrastructure dedicated to CO 2 shipping.

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Utilization
1. Conversion
a) Polycarbonate polymers in plastic fabrication
b) Methane, methanol, gasoline, diesel as
industrial fuel
c) Chemicals like methanol & methane which
normally required in industrial
d) CO2 conversion to cement, high-performance
concrete, plaster boards & electrical insulation
for construction materials

2. Non-conversion – heat transfer fluid and welding in industrial.

3. Government’s role to promote and provide exposure on the potential of utilization of CO 2 to
the industry players in related fields like plastic, fuel, chemical & construction material
fabricators. Benchmarking to countries like UAE (CO2 recovery plant) and others.
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 Recommendation for CCUS in PIPC
No Process Assessment Remarks
1 Carbon Feasible To be adopted by companies at the
Capture emission level with the available
CAPTURE TRANSPORT
UTILIZATIO
STORAGE technologies. Government to establish
N
governing policy and incentives.
2 Transport Feasible Similar with transportation in oil and
gas industry i.e., by pipeline, truck and
shipping. Need Government policy that
allows for transboundary transport of
CO2. To integrate existing port facilities
for CO2 shipping.

3 Utilization Feasible Technology is matured and applied

globally. To promote and provide
exposure on the potential of utilization
by industry players.
4 Storage Not Feasible Not recommended as permanent
storage hub due to non-availability of
the mainstream storage i.e, depleted oil
& gas reservoir. Proposed to developed
centralized temporary storage hub prior
to transportation out to permanent
storage.

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Conclusion
1. By having capture facilities in PIPC and with adequate support from the government through establishment of
CCUS policy and incentives, it is anticipated that PIPC can become a net-zero oil & gas hub by 2050, in line with
national aspiration.

2. To further explore the feasibility and implementation of CCUS in the PIPC, comprehensive studies shall be carried
out. The studies should encompass various aspects:
a) Technical Feasibility Study.
b) Economic Viability Analysis
c) Environmental Impact Assessment
d) Policy and Regulatory Framework Review
e) Infrastructure and Integration Analysis
f) Stakeholder Engagement and Social Impact Assessment
g) Risk Assessment and Mitigation Strategies
h) Long-term Strategy and Roadmap

3. The findings and recommendations from these studies can be integrated into the Enhanced PIPC Masterplan
Study 3.0 (EPMS 3.0). By doing so, JPDC can ensure a comprehensive and cohesive strategy for the successful
integration of CCUS facilities within PIPC, supporting its transition to a net-zero oil and gas hub in line with
national sustainability goals.

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Conclusion
4. CCUS/CCS technology has the potential to create business opportunities in Malaysia, including the RE market,
energy efficiency, and carbon credit trading.

5. It is also expected to generate significant positive economic development impacts, such as higher Gross Domestic
Product (GDP) and job creation. However, potential challenges, including the energy trilemma, high costs of
technologies, technological barriers, and public acceptance, must be overcome.

6. To achieve equilibrium, Malaysia must continuously monitor and review evolving policy, technological and
business market trends. This will enable the country to become a leader in the development and implementation
of CCS technology in this region.

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 Thank You

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