Malaysia’s energy giant Petronas has entered into a memorandum of understanding (MoU) with China Petrochemical Corporation (Sinopec) to look into options for progressing the energy value chain, fostering security of supply while accelerating the low-carbon shift.
The MoU is said to demonstrate the willingness of both companies to work on increasing the resilience of the energy supply while decreasing its cost.
In addition to fostering economic growth and development in the Asia Pacific region, the agreement aims to promote the transition to a low-carbon economy and explore new avenues within the energy industry.
The MoU signing ceremony in Kuala Lumpur was attended by Sinopec Chairman Ma Yongsheng and President and CEO of Petronas, Datuk Tengku Muhammad Taufik .
The collaboration will focus on various areas, including increasing sustainability within the commodity and specialty chemicals sectors, crude oil and liquefied natural gas (LNG) trading, lubricants, and digital solutions.
Furthermore, attention will be given to decarbonization efforts in industries such as transportation, shipping, manufacturing, aviation, and power. This is expected to allow these industries to reduce their carbon footprint without compromising competitiveness.
Both sides also wish to make investments in upstream, refinery and chemicals, new energy and carbon capture, utilization and storage (CCUS), technical and engineering services, as well as explore technology licensing opportunities in areas such as biofuels and plastic recycling.
Last month, Sinopec signed a strategic cooperation agreement with TotalEnergies to further develop the partnership between the two companies in biofuels, green hydrogen, CCUS, and decarbonization.
Meanwhile, Petronas has been busy with its projects in African waters. The firm’s Suriname subsidiary made a hydrocarbon discovery at an exploration well in Block 52 offshore Suriname, said to be the block’s third since 2020.
In addition, a final investment decision (FID) was reached for a deepwater oil project offshore Angola on which the Malaysian heavyweight’s Angolan branch is working with TotalEnergies and Sonangol.