Petronas, TotalEnergies, and Mitsui form joint venture for Malaysian carbon storage

Petronas CCS Ventures, TotalEnergies EP CCS Malaysia, and Mitsui & Co have signed a joint venture agreement to develop offshore carbon dioxide (CO2) storage sites in Peninsular Malaysia. The project is a central component of Malaysia’s Southern CCS Hub, which aims to establish the country as a decarbonization hub for the Asia-Pacific region.

The initial phase of the venture will focus on a depleted offshore gas field with the capacity to inject up to five million tonnes of CO2 per year. The partners are targeting the start of injection operations as early as 2031, subject to industry readiness. The joint venture will create a dedicated company to manage the development, commercialization, and operation of the site.

The partnership combines Petronas’s subsurface infrastructure with TotalEnergies’ technical expertise in CCS development and Mitsui’s logistics and investment experience. The hub is intended to receive CO2 from both domestic and regional sources, including potential cross-border shipments. This follows previous technical agreements between the companies in 2023 and 2025.