KUALA LUMPUR (Oct 23): Petroliam Nasional Bhd’s (PETRONAS) wholly owned subsidiary Petronas CCS Ventures Sdn Bhd (PCCSV), TotalEnergies EP CCS Malaysia and Mitsui & Co Ltd 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 first phase primarily targets a depleted gas field offshore Peninsular Malaysia with an expected injection capacity of up to five million tonnes per annum, with first injection targeted as early as 2031, in line with industry readiness. 

PCCSV chief executive officer Emry Hashim Yusoff said the JVA is a reflection of the strong partnership the company had built with its strategic partners over the years.

He added that the parties have worked closely together to mature the opportunity and establish a shared vision for the Southern CCS Hub since their early development studies through to front-end engineering and design (FEED) activities.

“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,” he said in a statement on Friday. 

The JVA builds from previous agreements signed by the partners on the CCS Development Agreement in 2023, wherein 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 FEED activities and the formation of the joint venture structure. 

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