KUALA LUMPUR: PETRONAS, through its wholly-owned subsidiary PETRONAS CCS Ventures Sdn Bhd (PCCSV), has signed a joint venture agreement (JVA) with TotalEnergies EP CCS Malaysia and Mitsui & Co Ltd to develop carbon dioxide (CO2) storage areas offshore Peninsular Malaysia.
The project forms part of Malaysia's Southern Carbon Capture and Storage (CCS) Hub, which aims to provide long-term CO2 storage for domestic and regional industries.
In a statement, PETRONAS said the agreement establishes a framework for incorporating a joint venture company to develop, commercialise and operate the carbon storage areas.
The first phase primarily targets a depleted gas field offshore Peninsular Malaysia with an expected injection capacity of up to five million tonnes per annum, with first injection targeted as early as 2031, in line with industry readiness.
The JVA follows a CCS Development Agreement signed in 2023, under which the partners conducted development studies and technical evaluations of potential storage sites.
In 2025, the parties signed a Key Principles Agreement to advance front-end engineering and design (FEED) activities and establish the joint venture structure.
PCCSV chief executive officer Emry Hisham Yusoff said the partners would focus on advancing the project's technical and commercial development ahead of a final investment decision.
“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.”
The Southern CCS Hub is being developed to receive CO2 from domestic and regional sources, including potential cross-border shipments.
The project combines PETRONAS' subsurface and project management expertise, TotalEnergies' CCS development experience and Mitsui's commercial development, investment and logistics capabilities.
