EL7.AI
StocksMedium•23 October 2026•
2 min read

Malaysia targets 5 million tonnes of annual carbon injection at offshore storage hub

Key Facts

1The first phase targets injection capacity of up to 5 million tonnes a year.
2The partners aim to begin the first injection as early as 2031.
3Malaysia aims to establish 3 storage hubs with total capacity of 15 million tonnes a year by 2030.
4Malaysia aims to cut emissions intensity by 45% by 2030 compared with the 2005 level.

PETRONAS CCS Ventures, a wholly owned subsidiary of PETRONAS, TotalEnergies EP CCS Malaysia and Mitsui signed a joint venture agreement to develop carbon dioxide storage areas off Peninsular Malaysia as part of the Southern Storage Hub. PETRONAS said the agreement sets a framework for establishing a dedicated project company to advance the development, marketing and operation of the storage area. The first phase targets a depleted offshore gas field, with expected injection capacity of up to 5 million tonnes a year. The partners hope to begin the first injection as early as 2031, subject to sector readiness. That timeline puts the project in a development period before operations, while a final investment decision remains a later step.

The hub is intended to do more than store domestic emissions: it was designed to receive carbon dioxide from Malaysia and the region, with the potential to accept cross-border shipments. PETRONAS said the project aims to serve hard-to-abate sectors that may need to transport and store carbon away from production sites. This arrangement could give the hub a regional role in managing industrial emissions, but the announced agreement covers development of the storage areas and establishment of the project company; its disclosed details do not specify cross-border shipment volumes. The announced first-phase capacity remains tied to the targeted field, at up to 5 million tonnes a year. Operation of the system will depend on development progress and sector readiness ahead of the targeted injection date.

The new agreement follows a cooperation process that began with a carbon capture and storage development agreement in 2023, before the partners moved to a heads of agreement in 2025. PETRONAS said the 2025 agreement paved the way for front-end engineering design and detailed engineering, as well as work on the joint venture structure. The partnership is thus moving from earlier agreements to a dedicated company framework for developing, marketing and operating the storage area. The chief executive of PETRONAS CCS Ventures said the partners were confident they could maintain momentum toward a final investment decision

in the near future.

The statement did not set a date for that decision, while it targeted the start of injection as early as 2031.