Malaysian state energy company Petronas, France’s TotalEnergies, and Japan’s Mitsui & Co. have formally signed a joint venture agreement to develop offshore CO2 storage sites in Malaysia.
The execution of the agreement sets the governing framework to incorporate a dedicated corporate entity tasked with managing engineering development, commercial marketing, and long-term site operations.
The joint venture’s initial phase focuses on converting a depleted offshore gas reservoir into a carbon storage sink with a planned injection capacity of up to 5 million tons of CO2 per year. The corporate consortium is targeting commercial operations to commence as early as 2031.
Petronas provides subsurface technical data and regional infrastructure access through its dedicated CCS division, TotalEnergies contributes technical design and project development experience, and Mitsui brings maritime logistics and structured finance expertise.
The depleted gas field asset represents a core component of Malaysia’s broader policy initiative to establish itself as a centralized carbon capture and storage hub for the Asia-Pacific region.
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The facility is designed to receive and permanently store CO2 volumes from both domestic heavy industrial point sources and cross-border maritime shipments.
The formal joint venture execution builds on preliminary technical cooperation agreements and Front-End Engineering Design (FEED) studies completed by the three companies between 2023 and 2025.
The venture partners are currently advancing final technical and commercial workstreams ahead of taking a Final Investment Decision (FID).
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