PETRONAS, TotalEnergies and Mitsui sign agreement for carbon project in Malaysia

PETRONAS, TotalEnergies Carbon Neutrality and Mitsui Co. have signed a Development Agreement to collaborate on a CCS project in Malaysia.

This strategic association aims to develop an integrated CCS solution, ranging from the evaluation of depleted reservoirs and mature saline aquifers for storage, to the identification of potential clients and the establishment of the necessary commercial and legal frameworks.

“PETRONAS is proud to collaborate with visionary partners such as TotalEnergies and Mitsui in developing carbon capture and storage solutions,” said Tan Sri Tengku Muhammad Taufik, President and CEO of PETRONAS Group.

“The strategic partnership demonstrates PETRONAS’s commitment to position Malaysia as a regional CCS hub and seize the opportunities of the energy transition, with the aim of reducing the carbon footprint of its operations and meeting current energy needs.”

TotalEnergies will bring its strong CCS experience to the partnership, which is based on projects in Europe, including an integrated project in Norway to start next year. The company aims to achieve a carbon storage capacity of 10 million tons per year by 2030.

For its part, Mitsui will use its experience in oil and gas exploration and production, as well as its extensive business network, to assist in the development of the CCS project in Malaysia.

The company sees carbon capture and storage as an affordable solution to decarbonizing hard-to-remove emitters and will help create an environmentally friendly society.

This agreement marks the progress of the initiatives outlined in the Memorandums of Understanding signed by PETRONAS, TotalEnergies and Mitsui in 2022. PETRONAS continues to collaborate with industry partners in its pursuit of a sustainable portfolio and its commitment to achieve net zero carbon emissions for 2050.