Malaysia’s energy group Petronas, TotalEnergies and Mitsui have signed a joint venture agreement to develop CO2 storage sites offshore Peninsular Malaysia as part of the Southern CCS Hub (Petronas press release, 23/10/2026). The first phase will target a depleted gas field with an injection capacity of up to 5 MtCO2/year, with first injection targeted for 2031. The agreement follows earlier development studies and front-end engineering and design (FEED) work and establishes a framework for a joint venture company that will develop, commercialise and operate the storage site. The partners will now advance the project ahead of a final investment decision (FID).
According to Petronas, "The CO2 storage areas support Malaysia’s ambition to be a regional CCS Hub. It aims to provide safe, reliable, and long-term CO2 storage for hard-to-abate industries. The Southern CCS Hub is being developed to receive CO2 domestically and regionally, including potential cross-border CO2 shipments, supporting their decarbonisation efforts."