Japan Petroleum Exploration Co. (JAPEX), JGC Holdings Corporation (JGC HD), Kawasaki Kisen Kaisha, (K LINE), JFE Steel Corporation (JFE Steel), Mitsubishi Gas Chemical Co., (MGC), Mitsubishi Chemical Corporation (Mitsubishi Chemical), The Chugoku Electric Power Co., (EnerGia) and Nippon Gas Line Co. (NGL) (Eight Japanese Companies) signed a contract with Japan Organization for Metals and Energy Security (JOGMEC) for the commissioning of design work related to the Carbon Capture and Storage (CCS) project to inject and store CO₂ emitted from multiple industries in Japan including the Setouchi area in offshore Sarawak, Malaysia, which is one of the public solicitations regarding the Request for Proposal on the "Japanese Advanced CCS Projects" in the fiscal year 2024.

Eight Japanese Companies that signed the contract will proceed with the Work to examine the equipment and costs required for the separation, collection and liquefaction of CO₂ emitted from steelworks, power plant, chemical plant, etc., in Japan. PETRONAS CCS Ventures (PCCSV) will jointly work with the Eight Japanese Companies to examine equipment and costs required for the marine transport to Sarawak (including domestic marine transportation in the Setouchi area) and the injection and storage of the CO₂.

JAPEX, JGC HD, K LINE, and PCCSV have signed the Key Principles Agreement (KPA) regarding the study of commercializing the CCS project on September 22, 2023 and have signed the Storage Site Agreement with PETROLEUM Sarawak BERHAD the Sarawak state-run energy company and the state's CO₂ storage rights manager on February 26, 2024. To implement the injection and storage of CO₂ from domestic as well as foreign countries such as Japan, JAPEX, JGC HD, "K" LINE, and PCCSV are investigating the profitability of the CCS project using depleted gas fields off the coast of Sarawak, offshore Malaysia including M3 depleted field as CO₂ storage sites by formulating a development plan for the CO₂ storage sites including CO₂ transportation, onshore terminals and pipelines, and evaluating their technical and commercial feasibility.

In addition, on February 26, 2024, JAPEX, JGC HD, "K" LINE, JFE Steel, EnerGia, and NGL (have signed a Memorandum of Understanding regarding joint evaluation aiming to establish CCS value chain originated from Japan for the commercialization of the CCS project in Malaysia. The Six Companies are conducting the joint evaluation of required facilities and costs to establish the CCS value chain, from CO₂ separation and capture at JFE Steel's steelworks and EnerGia Group's power plant to marine transportation (including domestic marine transportation in the Setouchi area) of liquefied CO₂ to the receiving point(s) in Malaysia.

As the joint evaluation progressed, the Six Companies recognized that their direction of business consideration was in line with those of MGC and Mitsubishi Chemical, which were considering decarbonizing their factories. As a result, the Eight Japanese Companies concluded the contract with JOGMEC.