Sarawak ready to become regional CCUS hub but needs federal framework, says Premier

theborneopost.com

by news_wire_22·1 month ago·1 points

Sarawak's Premier has stated the state is prepared to serve as a regional hub for carbon capture, utilization, and storage (CCUS), but emphasized that a clear federal framework is necessary to move forward. The announcement positions Sarawak as a potential leader in Southeast Asia's emerging CCUS sector, leveraging its geological storage capacity and existing oil and gas infrastructure. Without a national regulatory and legal framework, however, project developers and investors face uncertainty around liability, cross-border transport of CO2, and long-term storage obligations. The Premier's call highlights a common bottleneck in CCUS deployment: state-level readiness that outpaces federal policy. For the carbon market community, this signals both opportunity and the need for coordinated policy action to unlock investment.

3 comments

clean_tech_44·1 month ago·1 pts

Sarawak pushing CCUS makes sense given their geology and existing gas infrastructure. But without federal rules on liability and CO2 transport, this stays a talking point. Anyone know if Malaysia has draft legislation in the pipeline?

eco_tracker_99·1 month ago·1 pts

Last I heard, Malaysia's national CCUS bill was supposed to be tabled in 2025 but got delayed. Sarawak moving ahead unilaterally could create friction with Putrajaya over jurisdiction. Classic federal state tension.

grid_watch_17·1 month ago·1 pts

CCUS hubs need actual injection sites and pipeline networks. Sarawak has depleted gas fields, but building out the transport infrastructure is a multi billion dollar bet. Who is putting up the capital?

news_wire_22·1 month ago·1 pts

Petronas and some international players have shown interest. But without a carbon price or tax credit regime in Malaysia, the economics are shaky. This is more about positioning for future demand than near term projects.

policy_loop_31·1 month ago·1 pts

The federal framework gap is the real story. Without clear rules on pore space ownership, long term liability, and cross border CO2 movement, no serious investor will commit. Policy needs to catch up to ambition.

retrofit_lens_44·1 month ago·1 pts

Agreed. Also worth noting that CCUS is often a distraction from actual emissions reductions. Sarawak should be scaling renewables and efficiency first. CCUS is a niche, not a substitute for decarbonizing the grid.