Prime Minister Anwar Ibrahim has voiced optimism about the progress of a clean hydrogen energy and decarbonisation initiative involving the Sarawak Economic Development Corporation Energy (SEDCE), Petroleum Sarawak Bhd (Petros), and a Japanese consortium, expressing hope that facilitation efforts can be finalised by May.
On February 26, 2024, Petros, Petronas subsidiary CCS Ventures Sdn Bhd, and Japanese partners—including Japan Petroleum Exploration Co Ltd, JGC Holdings Corporation, and Kawasaki Kisen Kaisha Ltd—signed a storage site agreement (SSA) for the M3 depleted field, an offshore site in Sarawak, Malaysia. This agreement sets the stage for feasibility studies on carbon dioxide (CO2) storage at the M3 field, part of the M3 Carbon Capture and Storage (CCS) Project. The studies will also include planning for site development, such as onshore terminals, transportation pipelines, and assessments of the project’s technical and commercial viability.
During a joint press conference with Japan’s Prime Minister Shigeru Ishiba in Kuala Lumpur, Anwar underscored the importance of meeting project milestones. He acknowledged Sarawak Premier Abang Johari Openg’s commitment to the initiative and highlighted support from Japan’s government.
“We hope to facilitate this promptly to meet deadlines—potentially by May—when discussions will continue in either Tokyo or Kuala Lumpur,” said Anwar, who also serves as Malaysia’s finance minister.
Long-Standing Energy Ties
Anwar expressed gratitude for Japan’s enduring partnership with Petronas, particularly in the liquefied natural gas (LNG) sector. Japanese firms are now contributing to Malaysia’s carbon capture and storage (CCS) initiatives under Petronas’ clean energy strategy. This includes the delivery of carbon-neutral LNG to Shikoku Electric Power and Hiroshima Gas.
Anwar also touched on Malaysia’s rare earth elements (REE) industry, expressing hopes for Japanese involvement in the development of a processing facility. He further mentioned the broader vision of an ASEAN Energy Grid, linking Laos, Thailand, Malaysia, and Singapore, and an undersea energy cable from Sarawak to Peninsular Malaysia and Singapore—an endeavour that he believes could benefit from Japanese participation.
Strengthening Bilateral Ties
Prime Minister Ishiba affirmed Japan’s commitment to bolstering cooperation with ASEAN, focusing on supply chain resilience and green transformation. “To ensure energy security and achieve decarbonisation, we will enhance collaboration in areas such as ammonia-fuelled gas turbines, carbon capture and storage, hydrogen, and LNG, particularly in Sarawak,” Ishiba stated.
He also highlighted joint efforts under the Asia Zero Emissions Community (AZEC) framework and noted Japan’s role in advancing green energy partnerships with Malaysia.
Japan and Malaysia’s relationship, elevated to a Comprehensive Strategic Partnership in December 2023, has become a cornerstone of economic collaboration. By June 2024, Japan had invested RM105.2 billion in 2,821 manufacturing projects in Malaysia, generating nearly 345,000 jobs.
The formal ceremony for Ishiba’s two-day official visit was held at the Perdana Putra Complex in Putrajaya. Anwar emphasised that trade, investment, and higher education have been central themes during the visit, reflecting the strengthening ties between the two nations.
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