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Petronas, TotalEnergies, and Mitsui are to develop a five million tonne per annum (mtpa) carbon dioxide (CO2) storage hub off the coast of Peninsular Malaysia under a new joint venture (JV), with first injection targeted for 2031.
The three oil and gas companies signed a JV agreement to develop CO2 storage areas as part of Malaysia’s Southern Carbon Capture and Storage (CCS) Hub, which plans to receive domestic and CO2 volumes.
It follows the trio progressing to a key principles agreement in 2025, which they say set the stage for front-end engineering design activities.
“We are confident in maintaining this momentum towards achieving final investment decision in the near future, while advancing Malaysia’s ambitions to become a leading regional CCS hub,” said Emry Hisham Yusoff, CEO of Petronas’ CCS subsidiary.
The first phase targets a depleted gas field offshore Peninsular Malaysia with an expected 5 mtpa injection capacity. The companies have not indicated capacities for further phases.
It comes after Petronas CCS Ventures was granted an for the project in 2025 by the Malaysia Carbon Capture, Utilisation, and Storage Agency.
While the country currently has no operational CCS capacity, a CO2 storage capacity of 15 mtpa by 2030, scaling to 40 mtpa in 2040, and up to 80 mtpa by 2050.
Elsewhere, Petronas is progressing its Kasawari CCS project offshore Sarawak, designed to capture CO2 associated with natural gas production. In April 2026, the company said it could bring forward the project’s first CCS injection to 2027.
