Petronas, TotalEnergies and Mitsui have signed a Joint Venture Agreement (JVA) to develop the CO2 storage areas offshore Peninsular Malaysia, a key component of Malaysia’s Southern Carbon Capture and Storage (CCS) Hub.
The JVA builds from previous agreements signed by the partners on the Carbon Capture and Storage Development Agreement in 2023, where the parties had undertaken development studies and technical evaluations of potential storage areas offshore Peninsular Malaysia. In 2025, the parties progressed into a Key Principles Agreement, which laid the groundwork for front-end engineering and design (FEED) activities and the formation of the joint venture structure.
The JVA marks a further step in the partnership, combining Petronas’ subsurface and project management expertise with TotalEnergies’ global CCS experience and Mitsui’s strengths in commercial development, investment and logistics. The agreement establishes the framework for a dedicated joint venture company to develop, commercialise and operate the carbon storage areas, supporting CCS deployment across the Asia Pacific region. The partners will now focus on advancing the technical and commercial maturity of the initial storage project ahead of a final investment decision.
The first phase primarily targets a depleted gas field offshore Peninsular Malaysia with an expected injection capacity of up to 5 million tonnes per annum, with first injection targeted as early as 2031, in line with industry readiness.
The CO2 storage areas support Malaysia’s ambition to be a regional CCS Hub. It aims to provide safe, reliable, and long-term CO2 storage for hard-to-abate industries. The Southern CCS Hub is being developed to receive CO2 domestically and regionally, including potential cross-border CO2 shipments, supporting their decarbonisation efforts.
Emry Hisham Yusoff, Chief Executive Officer, Petronas CCS Ventures, said: “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. By bringing together Petronas’ subsurface expertise, with their global CCS experience, commercial and logistics capabilities, we are confident in maintaining this momentum towards achieving Final Investment Decision (FID) in the near future while advancing Malaysia’s ambition to become a leading regional CCS hub.”
In the photo: Development of Malaysia’s Southern CCS Hub. Photo courtesy of Petronas