Petronas, through its subsidiary Petronas CCS Solutions (PCCSS), has entered into a JSA with Japan's Jera.
The collaboration aims to assess the feasibility of a comprehensive CCS value chain.
This includes capturing carbon dioxide (CO₂) emissions in Japan, cross-border transportation and storage in Malaysia.
The agreement marks a significant advancement in efforts to mitigate greenhouse gas emissions in Asia-Pacific.
PCCSS chief executive Nora’in Md Salleh said: "This agreement signifies a pivotal step towards enhanced collaboration with an important partner. This spirit of collaboration will speed up progression and enrich CCS delivery by leveraging the vast experiences of the two organisations.
"This is in line with Petronas' commitment in accelerating the development of prominent CCS hubs in Malaysia, for the region."
The JSA underscores the commitment of both companies to establish a global network for cross-border CO₂ transport and storage.
It represents a concerted effort to reduce emissions in both Malaysia and Japan.
Petronas is actively pursuing CCS as a critical solution for reducing emissions from its operations and other industries.
The company is strategically forming partnerships to strengthen its sustainable portfolio and expedite its net-zero carbon emissions (NZCE) 2050 pathway.
While financial details of the agreement remain undisclosed, Petronas continues to explore new opportunities.
The company is considering fresh investments in the Atlantic Basin for its liquefied natural gas (LNG) business, as indicated by a senior executive last month.
In a similar development last month, Petronas partnered with a Japanese consortium comprising ENEOS, JX Nippon Oil & Gas Exploration and Mitsubishi.
This collaboration also focuses on CCS, aiming to establish potential value chains in Malaysia.
The partnership's goal is to capture and store approximately three million tonnes of CO₂ annually in the Tokyo Bay area, with prospects of doubling this figure.
The initiative, which is among Japan's largest planned CCS projects, aims to begin operations by fiscal year 2030.
