PETRONAS, TotalEnergies and Mitsui form JV to develop Southern CCS Hub storage offshore Malaysia
- Joint Venture Agreement signed to develop CO2 storage areas offshore Peninsular Malaysia as part of the Southern CCS Hub.
- First phase targets a depleted gas field with expected injection capacity of up to 5 million tonnes per annum.
- First CO2 injection is targeted as early as 2031, subject to industry readiness and final investment decision.
- Partners moved from a 2023 development agreement to a 2025 Key Principles Agreement and will now progress technical and commercial maturity ahead of FID.
Agreement and background
The Joint Venture Agreement builds on prior commitments from a 2023 Carbon Capture and Storage Development Agreement and a 2025 Key Principles Agreement that enabled FEED activities and the JV structure. The JVA establishes a framework to form a dedicated joint venture company to develop, commercialise and operate the carbon storage area.
Project scope and timeline
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. First injection is targeted as early as 2031, in line with industry readiness. The storage areas are intended to support Malaysia’s ambition to act as a regional CCS hub, offering long-term CO2 storage for hard-to-abate industries and accommodating domestic and regional, including potential cross-border, CO2 shipments.
Roles and next steps
PCCSV will contribute subsurface and project management expertise, TotalEnergies provides global CCS development experience, and Mitsui brings strengths in commercial development, project investment and logistics. The partners will focus on advancing the technical and commercial maturity of the initial carbon storage project ahead of a Final Investment Decision.
Source: PCG