TOKYO — PETRONAS, TotalEnergies and Mitsui & Co., Ltd. have signed a joint venture agreement to develop carbon dioxide (CO₂) storage areas offshore Peninsular Malaysia as part of the country’s Southern Carbon Capture and Storage (CCS) Hub.
The agreement was signed by PETRONAS’ wholly owned subsidiary, PETRONAS CCS Ventures Sdn Bhd (PCCSV), TotalEnergies EP CCS Malaysia and Mitsui, marking a further step towards developing the carbon storage project.
The first phase will focus on a depleted gas field offshore Peninsular Malaysia, with a planned CO₂ injection capacity of up to five million tonnes annually. First injection is targeted as early as 2031, subject to industry readiness.
The agreement establishes a framework for a dedicated joint venture company to advance the development, commercialisation and operation of the carbon storage area, bringing the project closer to a final investment decision (FID).
The partnership builds on a Carbon Capture and Storage Development Agreement signed in 2023, under which the parties conducted development studies and technical evaluations of potential storage areas. In 2025, they signed a Key Principles Agreement, paving the way for front-end engineering and design (FEED) activities and the establishment of the joint venture structure.
PCCSV chief executive officer Emry Hisham Yusoff said the agreement reflected the partners’ commitment to advancing the Southern CCS Hub and strengthening Malaysia’s position as a regional CCS centre.
“The Joint Venture Agreement is a reflection of the strong partnership we have built with our strategic partners over the years. From our early development studies through to FEED activities, we have worked closely together to mature this opportunity and establish a shared vision for the Southern CCS Hub,” he said.
He said the collaboration combined PETRONAS’ subsurface expertise with TotalEnergies’ global CCS experience and Mitsui’s commercial, investment and logistics capabilities.
The partners will focus on advancing the technical and commercial readiness of the initial carbon storage project ahead of an FID.
The Southern CCS Hub is being developed to provide safe, reliable and long-term CO₂ storage for industries that face significant challenges in reducing emissions. It is also intended to accommodate CO₂ from domestic and regional sources, including potential cross-border shipments, supporting decarbonisation efforts across the Asia-Pacific region.
