Fast-track development of carbon storage sites to boost economy, Serembu rep tells S’wak govt

KUCHING (Nov 28): Serembu assemblyman Dato Miro Simuh has stressed the critical need to fast-track the development of carbon storage sites in Sarawak, highlighting a significant economic opportunity for the state.

He explained that applying Carbon Capture and Storage (CCS) technology to capture and store carbon dioxide (CO2) would unlock the economic potential of Sarawak’s vast offshore natural gas reserves.

These reserves are currently underutilised due to their high CO2 content.

“The availability of this gas will enable Sarawak to establish a Low Carbon Gas Hub in Kuching and drive economic growth for the state,” he said during the debate on the State Budget 2026 at the State Legislative Assembly (DUN) here.

Miro cited the recent passing of the federal Carbon Capture, Utilisation and Storage Act 2025 (CCUS Act), designed to catalyse the CCS industry as a new economic growth driver while reducing carbon emissions.

However, he noted that this federal legislation applies only to Peninsular Malaysia and Labuan.

“For carbon capture and storage within Sarawak, our state legislation, the Land (Carbon Storage) Rules 2023, approved by this august House, governs carbon storage both onshore and offshore,” he clarified, adding that additional rules are in place to regulate the transboundary transport of CO2 from overseas for storage in the state.

“With stable geological formations offshore, Sarawak has the capacity to store more than three trillion tonnes of CO2,” he highlighted.

Miro further pointed out that abandoned petroleum sites on the Sarawak continental shelf are considered suitable for storing CO2 captured from oil and gas operations.

“As I have been informed, Petros (Petroleum Sarawak Berhad), the resource manager for developing carbon storage sites, has already identified foreign partners to develop these sites.

“Efforts should be made to facilitate studies by Petros to establish secure storage facilities for the safe and permanent sequestration of CO2,” he urged.

He warned that any delay in implementing CCUS projects in Sarawak could prompt potential investors and users of such storage sites from Singapore, Japan, Korea, Australia, and other clients to seek alternatives – including Peninsular Malaysia, which now has its own legislation.