KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Malaysia is emerging as a promising regional hub for carbon capture, utilisation, and storage (CCUS), a critical component of sustainable practices in the oil and gas sector, as outlined in the National Energy Transition Roadmap (NETR). According to MIDF Amanah Investment Bank, Malaysia's strategic initiatives in CCUS are set to significantly enhance its position in the region.
Key Highlights:
National Energy Transition Roadmap (NETR): Malaysia aims to establish three CCUS hubs by 2030, with a combined storage capacity of up to 15 million tonnes per annum (mTpa), equivalent to about 300,000 barrels per day (bpd).
Identified CCUS Sites: Malaysia has identified 16 depleted fields suitable for CCUS, offering an estimated storage capacity of 46 trillion cubic feet. These include 11 offshore fields in Sabah and Sarawak, and five in peninsular Malaysia, including Terengganu and Pahang.
CCUS Legislation: A CCUS bill, set to be tabled in Parliament in November and expected to conclude in 2025, aims to regulate the activity, attract investors, and potentially streamline permit applications for CCUS projects.
Terengganu's Strategic Role:
Terengganu stands out due to its offshore oil wells and existing terminal facilities in Kerteh, which can be adapted for CCUS operations. The investment bank highlighted that leveraging existing infrastructure could significantly reduce costs, estimated at RM20 billion to RM30 billion for a complete CCUS facility.
Corporate Beneficiaries:
MISC Berhad (KL): Expected to play a significant role in CCUS operations, particularly in the transportation of captured CO2 via liquid carbon dioxide (LCO2) carriers.
Malaysia Marine and Heavy Engineering Holdings Bhd (KL): A subsidiary of MISC, MHB is poised to contribute to the construction of CCUS offshore facilities, having secured an EPCIC contract for the Kasawari carbon capture storage project.
Investment Potential:
MIDF Amanah has set a target price of RM9.75 for MISC shares, reflecting the company's potential to become a leader in establishing CCUS regional hubs in Malaysia. As of 9:05 am, MISC shares were flat at RM8.64.
Downside Risks:
The high costs of infrastructure development, long-term storage uncertainties, and challenging transportation methods are significant risks. However, the proposed CCUS bill is expected to mitigate these risks over time.
Conclusion:
The proposed CCUS bill is seen as a critical leverage to accelerate the implementation of CCUS solutions, aiding sectors in reducing greenhouse gas emissions and supporting the broader energy transition goals set forth in NETR. With clearer policies and strategic investments, Malaysia is well-positioned to become a leading regional hub for CCUS, contributing to sustainable energy solutions and attracting significant investments to the nation.
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