INPEX has signed a joint collaboration agreement (JCA) with Petroleum Sarawak Berhad (PETROS) concerning the potential development of a carbon capture and storage (CCS) project targeting CO2 emitted from gas fields with high concentrations of CO2, petrochemical industries, power plants, manufacturing industries and other sources in Sarawak, Malaysia. The project is expected to help reduce greenhouse gas emissions in Sarawak and accelerate the decarbonization of the state's industries as well as Malaysia as a whole.

CCS involves capturing CO2 emitted from industrial processes before it enters the atmosphere, transporting the CO2 using vessels and pipelines and storing the CO2 in subsurface geological formations where it is appropriately managed and monitored. INPEX and PETROS will conduct a feasibility study of the project including identifying CCS technologies and methodologies as well as target facilities, and evaluating economics and operational schemes. The companies aim to build economically viable CCS solutions targeting large-scale emitters in Sarawak, Malaysia.

As outlined in its Long-term Strategy and Medium-term Business Plan announced in February 2022, INPEX seeks to proactively engage in energy structure reforms towards the realization of a net zero carbon society by 2050 while responding to the energy demands of Japan and other countries around the world. In line with this strategy, the company aims to generate clean energy business opportunities centered on CCS in Sarawak, Malaysia with a view to expand these opportunities to other parts of Asia.