PETROLEUM Sarawak Berhad (Petros) has been given its first carbon storage licence as part of the state’s first step to exploit its potential for carbon dioxide storage, estimated to be around 9 billion tonnes.  

The licence, issued by the Land and Survey Department, is for an area in the North Luconia shoals, around 100 km offshore Bintulu.  

The state-owned oil and gas company is leading the charge for Sarawak’s carbon capture and storage (CCS) agenda. 

Earlier, when opening the Asia Carbon Conference in Kuching, Sarawak Premier Abang Johari Openg said the CCS agenda is a “clear testament to unwavering commitment and environmental sustainability of Sarawak”.  

“By taking proactive steps towards mitigating carbon emissions, Petros is playing a vital role in shaping a greener future for the industry and the planet,” he said. 

To unlock the long-term CCS value for the state, Abang Johari said a comprehensive CCS roadmap would be developed. 

He added that the implementation of CCS offers three significant benefits to the state.  

Firstly, he said, the CCS would enable the commercialisation of offshore stranded sour gas reserves.  

Sour gas is natural gas or any other gas containing significant amounts of hydrogen sulfide and carbon dioxide. 

Abang Johari said the commercialisation would generate direct and indirect revenue for the state through royalty, taxes, income, and local economic multiplier effects. 

It would also provide opportunities for local contractors to develop their capabilities in the industries related to gas mining. 

Secondly, the premier said CCS would ensure long-term energy and gas supply security for Sarawak, which aspires to achieve an energy mix of 70% hydro and 30% thermal plus alternative renewables to establish sustainable energy security.  

“The additional gas unlocked by CCS also allows the state to progress its gas roadmap, attracting foreign direct investment and enabling the maturation of blue and green hydrogen, and its derivatives in the region.” 

Thirdly, the base CCS infrastructure established by the sour gas field development could be further expanded to allow other carbon dioxide emitters, both local and foreign, to capture and store carbon dioxide, he said. 

That, Abang Johari added, would present business opportunities for local resources to operate CCS infrastructures.  

“This will generate revenue while further developing local capabilities, presenting an opportunity for Sarawak to position itself as a hub for CCS technology and expertise.” 

The premier said Petros’ key objective in the near term is to unlock the stranded sour gas resources. 

In the longer term, the state oil and gas company would play a proactive role in ensuring that the CCS value chain was developed in a well-orchestrated manner, he added. 

He also disclosed that Petros was in discussions with several international carbon dioxide emitters to assess the potential for cross-border carbon storage to “further scale up CCS and establish Sarawak as the CCS heartland in the Asia Pacific region”. 

“To ensure environmental integrity and security, Petros is collaborating with various international regulators and CCS industry experts to develop comprehensive guidelines.  

“These guidelines will ensure that the right assessments and studies are performed as part of the Sarawak CCS licensing requirements, further enhancing the environmental and operational safety of the CCS industry,” the premier said. – March 15, 2023.