Petronas CCS Ventures (PCCSV) has signed an agreement with TotalEnergies EP CCS Malaysia (TotalEnergies) and Mitsui to develop the CO₂ storage areas offshore Peninsular Malaysia.

It follows the partners’ earlier Carbon Capture and Storage development agreement in 2023, covering development studies and technical assessment of offshore storage areas offshore Peninsular Malaysia.

Last year, they entered a Key Principles agreement, establishing a framework for FEED activities and the structuring of the joint venture.

Under the latest agreement, the main focus will be on a depleted gas field offshore Peninsular Malaysia with estimated injection capacity of up to 5MMmt/yr. They are targeting first injection potentially in 2031.

The project will be a major component of Malaysia's Southern Carbon Capture and Storage (CCS) Hub, designed to receive CO₂ sourced both domestically and regionally, with potential cross-border CO₂ shipments.

Emry Hisham Yusoff, CEO of PCCSV, said: “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.”

TotalEnergies’ will contribute its global CCS development experience, while Mitsui’s strengths are said to be commercial development, project investment, and logistics.

The focus now is on advancing the technical and commercial maturity of this initial project ahead of the investment decision.