KUALA TERENGGANU: The government has identified Terengganu, Pahang, Sabah and Sarawak as potential leaders in the carbon capture, utilisation and storage (CCUS) industry.
Economy Minister Rafizi Ramli said this is because the four states have decommissioned oil wells and existing terminal facilities suitable for CCUS activities.
“The ministry is collaborating with these four states to ensure smooth implementation (of CCUS activities), and the order of execution will depend on the commercial readiness of each project,“ he told reporters after an engagement session with the Terengganu state government on CCUS initiatives in Malaysia here today.
Rafizi noted that CCUS, one of the pilot projects in the National Energy Transition Roadmap, is a high-impact industry which is expected to bring economic benefits to the states involved.
“Terengganu has the potential to be a leading state in implementing the CCUS, considering its offshore oil wells and existing terminal facilities in Kerteh.
“We understand that the investment for each fully-completed CCUS facility, from terminal to offshore, is usually around RM20 billion. This presents a significant investment opportunity that could bring substantial economic benefits to Terengganu if managed well,“ he said.
“At the Federal level, we see the potential for Kerteh to expand beyond the existing petrochemical and oil-based industries. CCUS can act as a catalyst for the development of new heavy industries in Terengganu,“ he added.
According to Rafizi, the government is finalising the CCUS-related Bill to be tabled in the Parliament this November, before key decisions on the industry can be made next year.
In the meantime, he said the Federal government and the state governments will also act as facilitators between CCUS industry operators such as Petroliam Nasional Bhd (Petronas) and customers, including foreign investors.
Meanwhile, Terengganu Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar said the state government, through its entities and state-owned companies (GLCs), has initiated preliminary discussions with Petronas to see if GLCs or state entities could partner with the oil and gas company in the CCUS industry.
He added that the CCUS is a major undertaking and it is important that the ecosystem established in Terengganu provides significant returns and benefits to the state, as well as for Malaysia as a whole.
