Petroliam Nasional Bhd (Petronas), a state-owned energy firm, has signed a memorandum of understanding with six South Korea-based companies to develop a cross border carbon capture and storage (CCS) project, also called the Shepherd CCS Project, between Malaysia and South Korea. The six companies that will be involved include Samsung Engineering, Samsung Heavy Industries, SK Earthon, SK Energy, GS Energy Corporation and Lotte Chemical.

As a part of the Shepherd CCS Project, carbon dioxide (CO2) will be captured from industrial complexes in South Korea which will then be transported to Malaysia where it will be stored. This is set to be Asia’s first CCS hub project.

Under the MoU, the partners will explore potential CO2 storage sites in Malaysia and other components of the CCS value chain, including enhancing cross-border CO2 transportation.

Samsung Engineering will manage the hub as well as undertake business development while Lotte Chemical, GS Energy, and SK Energy will oversee the CO2 capture process. Transportation of captured carbon will be handled by Samsung Heavy Industry, while SK Earthon and Petronas will oversee the exploration, selection, and operation of the storage location.