PETRONAS CCS Ventures (PCCSV), a wholly-owned subsidiary of Malaysia’s state-owned oil & gas firm Petronas, TotalEnergies EP CCS Malaysia and Mitsui & Co. have entered into a joint venture agreement (JVA) to develop a CO2 storage area offshore Peninsular Malaysia.
The partners previously signed a carbon capture and storage (CCS) agreement in 2023, as part of which they performed development studies and technical evaluations of potential storage areas offshore Peninsular Malaysia.
In 2025, the partnership 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.
With the JVA in place, the framework is set for incorporating a dedicated joint venture company to progress the development, commercialization, and operation of the carbon storage area offshore Peninsular Malaysia, described as a key component of Malaysia’s Southern CCS Hub.
The Southern CCS Hub is being developed to receive CO2 domestically and regionally, including potential cross-border CO2 shipments. The first phase primarily targets a depleted gas field with an expected injection capacity of up to 5 million tons per annum (mtpa), with first injection targeted as early as 2031, in line with industry readiness.
Petronas, TotalEnergies and Mitsui will now focus on advancing the technical and commercial maturity of the initial carbon storage project ahead of a final investment decision (FID).
“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,” said Emry Hisham Yusoff, PCCSV’s Chief Executive Officer.
“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.”
