PETRONAS, TotalEnergies and Mitsui Sign Joint Venture Agreement to Develop Carbon Storage Area in Southern CCS Hub

Tokyo, 23 October 2026 – PETRONAS’ wholly-owned subsidiary, PETRONAS CCS Ventures Sdn. Bhd. (PCCSV), TotalEnergies EP CCS Malaysia (TotalEnergies) and Mitsui & Co., Ltd. (Mitsui) have signed a Joint Venture Agreement (JVA) to develop the CO₂ storage areas offshore Peninsular Malaysia, a key component of Malaysia's Southern Carbon Capture and Storage (CCS) Hub.

The JVA builds from previous agreements signed by the partners on the Carbon Capture and Storage Development Agreement in 2023, where the parties had undertaken development studies and technical evaluations of potential storage areas offshore Peninsular Malaysia. In 2025, the parties progressed into a Key Principles Agreement, which laid the groundwork for front-end engineering and design (FEED) activities and the formation of the joint venture structure.

As a joint milestone for the three partners, the JVA reinforces their shared commitment to accelerating CCS deployment in support of decarbonisation efforts across the Asia Pacific region. The agreement also sets out the framework for incorporating a dedicated joint venture company to progress the development, commercialisation, and operation of the carbon storage area.

The first phase primarily targets a depleted gas field offshore Peninsular Malaysia with an expected injection capacity of up to 5 million tonnes per annum, with first injection targeted as early as 2031, in line with industry readiness.

The CO₂ storage areas support Malaysia’s ambition to be a regional CCS Hub. It aims to provide safe, reliable, and long-term CO₂ storage for hard-to-abate industries. The Southern CCS Hub is being developed to receive CO₂ domestically and regionally, including potential cross-border CO₂ shipments, supporting their decarbonisation efforts.

Emry Hisham Yusoff, PCCSV’s Chief Executive Officer, said: "The Joint Venture Agreement is a reflection of the strong partnership we have built with our strategic partners over the years. From our early development studies through to FEED activities, we have worked closely together to mature this opportunity and establish a shared vision for the Southern CCS Hub. 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.”

PCCSV's subsurface and project management expertise comes together with TotalEnergies' global CCS development experience and Mitsui's strengths in commercial development, project investment, and logistics. Building on these combined strengths, the partners will now focus on advancing the technical and commercial maturity of the initial carbon storage project ahead of a final investment decision.