PETRONAS, TotalEnergies and Mitsui Ink JV to Advance Southern CCS Hub

TOKYO, Oct 25 — PETRONAS, TotalEnergies and Mitsui & Co. have signed a joint venture agreement (JVA) to develop carbon dioxide (CO2) storage areas offshore Peninsular Malaysia, marking a significant step in advancing the country’s Southern Carbon Capture and Storage (CCS) Hub.

The agreement was signed by PETRONAS CCS Ventures Sdn Bhd (PCCSV), TotalEnergies EP CCS Malaysia and Mitsui following years of collaboration on development studies and technical evaluations of potential storage sites.

The JVA builds on a Carbon Capture and Storage Development Agreement signed in 2023 and a Key Principles Agreement reached in 2025, which paved the way for front-end engineering and design (FEED) activities and the establishment of a joint venture structure.

Under the first phase of development, the partners will focus on a depleted gas field offshore Peninsular Malaysia, with an expected CO2 injection capacity of up to five million tonnes annually. The first injection is targeted as early as 2031, subject to industry readiness.

PETRONAS, TotalEnergies and Mitsui

The project forms part of Malaysia’s ambition to become a regional CCS hub by providing safe, reliable and long-term carbon storage solutions for hard-to-abate industries. The Southern CCS Hub is also expected to support domestic and regional decarbonisation efforts, including potential cross-border CO2 shipments.

PCCSV chief executive officer Emry Hisham Yusoff said the agreement reflects the strong partnership forged among the three companies and brings together complementary expertise in subsurface capabilities, CCS development, commercial operations and logistics.

The partners will now focus on advancing the project’s technical and commercial development ahead of a final investment decision.

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