PETRONAS, TotalEnergies and Mitsui have signed a joint venture agreement to develop offshore carbon storage areas for Malaysia’s Southern Carbon Capture and Storage (CCS) Hub.
The first phase will focus on a depleted gas field offshore Peninsular Malaysia, with an expected injection capacity of up to 5 million tonnes of CO₂ per year. First injection is targeted as early as 2031, subject to industry readiness. The field’s name has not been disclosed.
For geoscientists, the project builds on development studies and technical evaluations of potential offshore storage areas begun by the partners in 2023. The agreement now provides a framework for a dedicated joint venture to progress the project’s development, commercialisation and operation. The partners say they will advance its technical and commercial maturity ahead of a final investment decision.
The Southern CCS Hub is intended to receive CO₂ from domestic and regional sources, potentially including cross-border shipments. Its development will depend on establishing suitable storage capacity and a reliable route from captured emissions to long-term offshore storage.
Image courtesy of PETRONAS.
