KUCHING: Sarawak is targeting its first carbon storage project in 2028 at the offshore Kasawari Oilfield.
Energy and Environmental Sustainability Deputy Minister, Datuk Dr Hazland Abang Hipni, said the project would be the first carbon capture, utilisation and storage (CCUS) project in Sarawak.
“After that, we will have the first carbon storage project in 2028, at an offshore area called Kasawari, the Kasawari Oilfield.
“That is between PETRONAS and Mitsubishi, if I am not mistaken. And that will be the first CCUS project in Sarawak,” he said.
He said this when met by reporters after officiating the 7th International Conference on Global Sustainability and Chemical Engineering (ICGSCE) 2026 and 1st International Petroleum and Energy Summit (IPET) 2026 at a hotel here today.
Earlier, Dr Hazland said Sarawak had completed the legislation, laws and ordinances needed to enable the state to undertake the CCUS industry.
He said CCUS involved land legislation and the Land Code which had been passed in the State Legislative Assembly (DUN) to enable Sarawak to undertake the industry and ensure all carbon storage rights belonged to the state.
He said depleted oil wells located in Sarawak’s waters would be used to store carbon from across borders, including Japan, Korea and Singapore.
He added that the carbon storage underground would involve a storage fee, with companies essentially renting the space.
“Industries and companies from Japan, Korea and elsewhere will have to pay rent to the Sarawak Government through PETROS because PETROS is the resource manager of all the assets, all the oil and gas assets in Sarawak,” he added.
He said Sarawak needed to ensure the carbon storage arrangement was clear and transparent.
