Malaysia’s Petronas sees CCS cost as challenge

March 4, 2022

Dateline 2021-12-21, Argus Media:

Malaysian state-owned Petronas’ goal of achieving net zero emissions by 2050mirrors that of its home country and includes hydrogen as a crucial step.

The firm will focus on blue over green hydrogen at first, targeting exports to existing LNG customers in Japan and South Korea. But the cost of CCS is challenging for domestic projects. “If you look at [the] Middle East or Australia, their carbon capture is all onshore, so the cost of doing it is much cheaper theoretically. But because ours is all offshore… you get into all the complexities of operating offshore,” Petronas’ hydrogen business head, Adlan Ahmad, says.

Malaysia’s Petronas faces gas test in move to net zero

February 20, 2022

Dateline 2021-12-27, Argus Media:

Malaysia’s state-owned Petronas’ decision about how to move forward with its gas supplies after announcing a 2050 net-zero target has been complicated by current high spot LNG prices.

The firm’s net-zero plan includes hydrogen as a crucial step. It said blue hydrogen offers a way to monetise the 1.5 trillion m³ of shale gas reserves it owns as part of a joint venture in Canada. But current “spectacular” LNG prices are complicating the picture. “There’s this energy transition going on… but now LNG is looking beautiful. The price is spectacular,” Petronas’ hydrogen business head Adlan Ahmad said.