Petronas, TotalEnergies and Mitsui launch joint venture for offshore CO2 storage in Malaysia

Petronas, TotalEnergies and Mitsui & Co Ltd have signed a joint-venture agreement in Tokyo to develop offshore carbon-dioxide storage under Malaysia’s Southern Carbon Capture and Storage hub. The venture will focus on a depleted offshore gas field off Peninsular Malaysia, with a planned injection capacity of up to five million tonnes per year and the first CO2 injection targeted for as early as 2031, subject to industry readiness.

The agreement formalises a framework for a new JV company, building on a 2023 development agreement and a 2025 key-principles pact that enabled feasibility studies and front-end engineering. Emry Hisham Yusoff highlighted the partners’ combined expertise and the goal of securing a final investment decision soon, supporting Malaysia’s ambition to become a leading regional CCS hub serving domestic and cross-border emitters. The project aims to provide long-term, secure storage for hard-to-abate industries across the Asia-Pacific, advancing regional decarbonisation efforts.