Sarawak's first CCUS project expected to be implemented in 2028

KUALA LUMPUR, Aug 20 2026: Sarawak is expected to implement its first carbon capture, utilisation and storage (CCUS) project in the Kasawari Field, about 200 km off the coast of Bintulu, in 2028, thus opening a new chapter in the development of the carbon storage industry in the state.

Caption: Deputy Minister Dr Hazland Hipni said the first CCUS project in Sarawak will be in Kasawari field

Deputy Minister of Energy and Environmental Sustainability Dr Hazland Abang Hipni said the project will involve Petroleum Sarawak Berhad (Petros), Petroliam Nasional Berhad (Petronas) and Mitsubishi.

"We will have a first project for carbon storage in 2028 in an area in the sea called Kasawari.

"The Kasawari oil field involves Petros, Petronas and also Mitsubishi if I am not mistaken and that will be the first CCUS project in Sarawak. After that, there will be  more," he told reporters at the sidelines of the Seventh International Conference on Global Sustainability and Chemical Engineering (ICGSCE 2026) held in conjunction with the First International Petroleum and Energy Summit (IPET 2026) today.

He added that all preparations including the relevant legal aspects and ordinances have been completed to enable carbon-related industries and clean energy to be implemented in Sarawak.

Explaining further, he said that the implementation of the CCUS industry involves aspects of land law, including amendments to the Land Code that have been approved by the Sarawak State Legislative Assembly (SLA)

Dr Hazland also said that Sarawak has the potential to become a location for carbon storage from countries such as Japan, South Korea and Singapore through the use of oil wells that have decreased production in the waters.

He said that carbon stored underground will be subject to a storage fee which will create new economic opportunities for Sarawak.

"We will charge what is called a storage fee, which is a fee for storing the carbon.

"It means rent. Industries or companies from Japan, Korea and so on have to pay rent to the Sarawak Government through PETROS because PETROS is the resource manager for all assets, all oil and gas assets in Sarawak," he said.