Petronas, TotalEnergies, Mitsui ink JV pact to develop Malaysia carbon storage sites

[SINGAPORE] Malaysia’s Petronas, France’s TotalEnergies and Japan’s Mitsui & Co have agreed to establish a joint venture (JV) to develop offshore carbon dioxide storage sites in Malaysia, advancing the South-east Asian country’s plans to be a decarbonisation hub.

The initial phase will focus on a depleted offshore gas field with an injection capacity of up to five million tonnes of CO2 per year. Operations are targeted to begin as early as 2031, the companies said in a joint statement on Friday (Oct 23).

The JV agreement sets the framework for incorporating a dedicated entity to handle development, commercialisation and operations.

Together, the companies are working towards a final investment decision “in the near future”, said Emry Hisham Yusoff, CEO of Petronas’ carbon capture and storage (CCS) subsidiary.

Ahead of that decision, the companies said they are now focused on “advancing the technical and commercial maturity of the initial carbon storage project”.

The partnership combines the Malaysian state-owned energy company’s sub-surface infrastructure with TotalEnergies’ technical CCS development experience and Mitsui’s logistics and project investment expertise.

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The site forms a central component of Malaysia’s push to become an Asia-Pacific hub capable of handling emissions from domestic heavy industry as well as cross-border shipments.

The venture follows preliminary technical agreements between the three companies in 2023 and 2025 that covered development studies and front-end engineering design.