PETRONAS, TotalEnergies, and Mitsui form joint venture for Malaysia CCS hub

PETRONAS, TotalEnergies, and Mitsui & Co. have signed a joint venture agreement to develop carbon dioxide (CO2) storage areas offshore Peninsular Malaysia. This partnership is a key component of the Southern Carbon Capture and Storage (CCS) Hub, aimed at supporting Malaysia’s goal of becoming a regional decarbonization center.

The first phase of the project will focus on a depleted gas field with a projected CO2 injection capacity of up to five million tonnes annually. The partners aim to begin CO2 injection as early as 2031, depending on industry readiness. The hub is intended to serve hard-to-abate industries both domestically and regionally, with the potential for cross-border CO2 shipments.

The companies will now proceed with technical and commercial development activities as they work toward a final investment decision.