KUALA LUMPUR: Integrated engineering solutions provider Kelington Group Bhd, through its wholly owned subsidiary, Ace Gases Marketing Sdn Bhd, has signed an addendum to its memorandum of understanding (MoU) with Petronas CCS Solutions Sdn Bhd, marking a step forward in their ongoing collaboration on carbon capture and storage (CCS) initiatives.
The addendum builds upon the original MoU signed on July 3, 2025, which established a framework for both parties to jointly explore opportunities in managing CO2 emissions.
The collaboration encompasses the evaluation of technologies, facilities, feasibility, commercial aspects, funding opportunities, and relevant industries, while leveraging Ace Gases’ expertise in carbon dioxide (CO2) logistics and facility operations.
Both parties have agreed to expand the scope of collaboration to include the Satellite CO2 Terminal Study, a key component of the broader CCS value chain.
A satellite CO2 terminal functions as an intermediate hub where liquefied CO2, primarily from the onboard carbon capture, is received, temporarily stored, and transferred for onward utilisation or permanent sequestration.
The study will assess the feasibility of developing such terminals, covering facility design, transfer infrastructure, integration with future CCS hubs, and commercial frameworks.
Pursuant to the addendum, the MoU shall now be in full force for a period of two years from the effective date on July 3, 2025, providing both parties with additional time to undertake comprehensive technical and commercial assessments.
Kelington Group CEO Lim Seng Chuan said this development reflects progress in the group’s collaboration with Petronas CCS Solutions and underscores the shared ambition to develop practical, scalable CO2 management solutions.
“The inclusion of the Satellite CO2 Terminal Study broadens the scope of our feasibility work and strengthens our ability to contribute meaningfully to Malaysia’s carbon capture ecosystem, while enabling us to further explore infrastructure solutions across the value chain,” he said.
The addendum further aligns the collaboration between Ace Gases and Petronas CCS Solutions with Malaysia’s National Energy Transition Roadmap, which outlines ambitious goals for achieving carbon neutrality by 2050.
This also forms part of the group’s broader sustainable engineering initiatives, which include CCS, green hydrogen, and other lower-carbon solutions, as part of its strategic business developments.
“Furthermore, with the planned introduction of a carbon tax in Malaysia, this strategic collaboration positions us to support industries in reducing their CO2 emissions and meeting evolving regulatory requirements, while contributing to national decarbonisation goals.
“With this, we remain optimistic on the outlook of our collaboration with Petronas CCS Solutions, supported by the growing demand for lower-carbon solutions.
“We look forward to continuing to work together as we advance this collaboration and explore potential pathways in the future,” Lim said.
At this juncture, the addendum to the MoU is not expected to have any material financial and operational impact on Kelington.
