Petronas, MISC, MOL Looking to Create LCO2 Carrier Joint Venture

September 22, 2023

Illustration - Mitsui O.S.K Lines in June received in-principle approvals for a liquefied CO2 vessel and a floating storage and offloading unit (FSO) from the American Bureau of Shipping. - CG rendering shows offloading CO2 from LCO2 carrier to LCO2 FSO and injection unit. - ©Mitsui OSK

Petronas CCS Ventures, a subsidiary of the Malaysian oil and gas giant Petronas has signed a term sheet with Mitsui O.S.K Lines, Ltd. (MOL) and MISC Berhad for the potential incorporation of a joint venture entity to invest in developing and monetising Liquefied Carbon Dioxide (LCO2) carriers for Carbon Capture and Storage (CCS) projects in Malaysia.

The parties have agreed in principle on the key commercial terms to allow progress to the next stage.

"Building on the February 2022 Memorandum of Understanding (MOU) signed with MOL and the four Approval in Principle (AiPs) for the conceptual design of the LCO2 carriers in June 2023, the Term Sheet marks another milestone for the positioning of CCS as a key lever in Petronas’ Net Zero Carbon Emissions by 2050 ambition," Petronas said.

Petronas Executive Vice President and Chief Executive Officer of Upstream, Adif Zulkifli said::"LCO2 carriers are integral to the CCS value chain to connect customers to carbon capture sites and storage locations. Our partnership with MOL and MISC is a powerful synergy of multiple expertise, abundant resources, and shared values. By combining our individual strengths, we will be able to facilitate the development and subsequently materialise the transportation of liquefied CO2 in a safe and sustainable manner.”

MISC President and Group Chief Executive Officer, Captain Rajalingam Subramaniam said: "We are pleased to partner with Petronas and MOL in this strategic venture. It's a perfect fit with our advocacy for a just transition, where responsible practices take center stage in managing societal emissions. As a future-focused shipowner, MISC is well-equipped to deliver the technical expertise required for LCO₂ shipping, a crucial link in the carbon capture and storage value chain."

“Again, our call to the maritime and other hard-to-abate industries is to collaborate for the betterment of everyone through viable solutions that are available.”

The signing ceremony was attended by Petronas Executive Vice President and Chief Executive Officer of Upstream, Datuk Adif Zulkifli; Petronas Head of Carbon Management and Chief Executive Officer of Petronas CCS Ventures, Emry Hisham Yusoff, MOL Executive Vice President Executive Officer and Chief Operating Officer, Toshiaki Tanaka; and MISC President/Group Chief Executive Officer, Captain Rajalingam Subramaniam. - Credit: Petronas