28/10/2026 by Daniel Tait
Petronas CCS Ventures Sdn. Bhd. (PCCSV), a subsidiary of Malaysia-based Petronas, has signed an agreement with partners for a carbon capture and storage (CCS) project.
The joint venture agreement (JVA) involves areas for storing carbon dioxide offshore of the Malaysian peninsula as part of the country’s southern CCS hub. The other partners are local subsidiaries of Mitsui and TotalEnergies, the latter of which makes the Total lubricant and metalworking products. The new JVA builds on previous agreements signed in 2023.
Since then, development studies have been undertaken and potential areas for storing carbon offshore of Malaysia have been evaluated. The work progressed to front-end engineering and design (FEED) activities after signing a key principles agreement in 2025, laying the foundations for the joint venture. The new agreement involves the establishment of a joint venture company to develop, operate and commercialise the new CCS areas. A depleted gas field off the coast of Malaysia will be the subject of the first phase of development.
The chief executive of PCCSV, Emry Hisham Yusoff, said:
“The Joint Venture Agreement is a reflection of the strong partnership we have built with our strategic partners over the years. From our early development studies through to FEED activities, we have worked closely together to mature this opportunity and establish a shared vision for the Southern CCS Hub.”
He added that the partners have confidence they will progress towards a final investment decision by combining the subsurface experience of Petronas with the CCS expertise of Mitsui and TotalEnergies.
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