MOL, MISC and Petronas launch JV to develop and acquire LCO2 carriers

Malaysia’s state-owned energy giant Petronas, through its subsidiary Petronas CCS Ventures, compatriot shipowner MISC Berhad, and Japanese shipping major Mitsui O.S.K Lines (MOL) have signed an agreement to launch a joint venture company for the purpose of acquiring and owning liquified carbon dioxide (LCO2) carriers.

As informed, the industry partners signed a joint venture agreement on May 10, 2024. Under the agreement, the companies plan to collaborate and explore the potential business opportunities to jointly invest in developing LCO2 carriers for the transportation of LCO2 to CO2 storage sites in Malaysia.

MISC Berhad stated that the partners have yet to reach the final investment decision on the LCO2 carriers under the agreement.

To remind, in September last year, the three majors signed a term sheet for the potential incorporation of a joint venture entity to invest in developing and monetizing LCO2 carriers.

MOL has received approvals in principle from classification societies DNV and ABS for the design of LCO2 carriers.

Since signing a memorandum of understanding (MoU) on February 7, 2022, MOL and Petronas have been studying optimal methods of ocean transport for LCO2 within the Asia Pacific and Oceania region.

With the assistance of Shanghai Merchant Ship Design & Research Institute (SDARI), the joint project completed the concept study for LCO2 carriers. Additionally, the companies worked on the design of a floating storage and offloading (FSO) unit.

Floating storage and offloading units have been identified as essential floating facilities that facilitate the receiving, storing, and offloading of LCO2. Moreover, they are regarded as a highly effective solution in the burgeoning carbon capture, utilization, and storage (CCUS) market, according to MOL.