Malaysia Approves First Offshore CCS Assessment for Duyong Area

Highlights

• PETRONAS CCS Ventures Sdn Bhd receives Malaysia’s first Offshore Assessment Permit for Carbon Capture and Storage in the Duyong area.
• The permit supports geological studies with TotalEnergies and Mitsui under the Key Principles Agreement (KPA).
• The project aligns with Malaysia’s pathway toward Net Zero by 2050 and the development of a Southern CCS offshore hub.

PETRONAS CCS Ventures Sdn Bhd (PCCSV) has bagged Malaysia’s first Offshore Assessment Permit for Carbon Capture and Storage (CCS) in the Duyong area.

The permit came from the Malaysia Carbon Capture, Utilisation, and Storage (MyCCUS) Agency under the newly enacted Carbon Capture, Utilisation, and Storage Act [Act 870] (CCUS Act 2025).

This step introduces a regulated framework for offshore CCS development in the country, giving PCCSV formal permission to study geological conditions in the Duyong field, located offshore Peninsular Malaysia.

Read More: What Is Carbon Capture & Storage? Technology, Benefits & Risks

With this permit, PCCSV, together with TotalEnergies and Mitsui & Co., Ltd. (MITSUI), can move ahead with structured assessments of the Duyong area’s suitability for long-term CO₂ storage. These studies are part of planning for the Southern CCS offshore hub, which is intended to serve industrial emitters in the region.

The Key Principles Agreement (KPA) signed in July 2025 lays the basis for technical evaluations and preparation for future engineering phases. The work involves examining reservoir structures beneath the seabed, monitoring long-term containment conditions, and calculating commercial arrangements for large-scale storage activities.

Compliance with the CCUS Act 2025 and accompanying Offshore Permit and Licensing Regulations 2025 shapes all technical work at the site. The partnership between PETRONAS CCS Ventures, TotalEnergies, and MITSUI gives teeth to earlier cooperation through the CCS Development Agreement signed in 2023.

Also Read: Asia’s Heavy Industry Unites for Cross-Border Carbon Capture Drive

So, on the whole, Malaysia aims to become a regional CCS hub, placing the country in a position to reduce emissions from industries in the Asia Pacific.

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Source: PETRONAS