Petronas, TotalEnergies and Mitsui have signed a joint venture agreement for Malaysia carbon storage off the Peninsular coast. The deal, signed in Tokyo on Friday, is a key part of Malaysia’s Southern CCS Hub, Petronas said.
What the Malaysia carbon storage venture plans
First, the partners will target a depleted offshore gas field. It should take up to 5 mtpa of CO2, with first injection as early as 2031. Next, they will set up a dedicated company to develop, sell and run the storage.
The hub aims to take CO2 from Malaysian heavy industry. In addition, it could receive cross-border shipments from other countries in the region.
Each partner brings different skills. Petronas offers subsurface and project know-how, while TotalEnergies has global CCS experience. Meanwhile, Mitsui adds commercial, investment and logistics strengths.
What comes next
The deal builds on a development agreement in 2023 and a key principles agreement in 2025. However, the partners have not yet taken a final investment decision. Emry Hisham Yusoff, chief executive of Petronas’ CCS unit, said they are working towards one “in the near future”, The Business Times reported.
For more on how the majors are shaping their portfolios, read our report on oil majors’ Q3 profits.
